Currently China’s president Xi Jinping is in a four-day closed-door meeting with top government officials discussing social and economic reforms. A main point of consideration is expected to be reforms to the country’s land laws. According to Chinese law, agricultural land falls under “collective ownership” prohibiting farmers from selling the land they work or live on making it exceedingly difficult for modern agricultural companies to acquire land. China’s top government think tank, the Development & Research Center of the State Council has made bold proposals entitled the “383 plan” to create a more conducive atmosphere for a better land management system including allowing farmers to lease, sell or transfer their land, and the establishment of nationwide land markets by the government. Upon the release of the “383 plan” agricultural stocks in China have been gaining. Such proposals in the past have met with resistance from local officials who currently control the land that the peasants farm. Despite this, China’s policies are overall moving toward letting the market set the price for land. Such changes would have far-reaching and significant impacts on China’s agricultural businesses.
To receive relevant news stories with summaries provided by GAI Research & Insight, subscribe to Global AgDevelopments, our free bi-weekly enhanced eNews service