Promoting the quality and efficiency of land in industrial clusters to promote the high-quality development of the county economy
2020-11-26 00:00

To the People’s Governments of all prefecture-level cities, the Administrative Committee of the Jiyuan Demonstration Zone, the People’s Governments of all counties (cities) under the direct administration of the province, and all departments of the Provincial People’s Government:

  To thoroughly implement the new development philosophy, comprehensively improve the level of land conservation and intensive use in industrial clusters, advance the “second phase of development” in industrial clusters, and promote high-quality development of the county-level economy, the following opinions are hereby put forward in light of the actual conditions in our province. Please ensure their conscientious implementation.

  I. Adhere to Planning-Led Development and Strengthen Control at the Source

  (1) Strictly enforce planning management. Local governments shall, based on their local territorial spatial master plans (currently comprising land use master plans and urban-rural planning, hereinafter the same), organize management bodies of industrial clusters and natural resources departments to scientifically formulate territorial spatial plans for industrial clusters. These plans shall be submitted to the Provincial Department of Natural Resources for review and approval, and subsequently approved and implemented by the respective local governments;Reasonably determine the scale, structure, and layout of land use within industrial clusters, as well as the standards for supporting facilities. Do not exceed the urban development boundaries established by the master plan for territorial space, and do not plan or construct vanity projects such as wide roads, large squares, or extensive green spaces. The spatial layout of relevant plans for industrial clusters must conform to the master plan for territorial space. For industrial clusters primarily focused on industrial development, the proportion of land allocated for industrial, warehousing, and logistics purposes must not be less than 60%.Strictly control changes in the designated use of industrial land within industrial clusters; the total amount of industrial land as determined by the National Territorial Spatial Master Plan must not be reduced under the pretext of formulating various plans for industrial clusters. Strictly evaluate the implementation of plans; industrial clusters where the actual utilization of various types of construction land has not reached 70% of the planned total area shall, in principle, not be permitted to expand.

  (2) Guide industrial projects into designated zones. Implement “regulation-based investment promotion” to ensure that investment projects comply with planning requirements.Unless there are special site selection requirements, all new industrial projects must be located within industrial clusters. The scale of land use and the phased construction schedule must be determined in strict accordance with agreed-upon investment intensity, output per mu, and control indicators for water, electricity, and energy consumption. The provision of land accompanied by planning and design schemes is encouraged. For enterprises in central urban areas undergoing “relocation from urban areas to industrial parks” or transformation and upgrading, priority shall be given to arranging or exchanging construction land within industrial clusters.Conduct orderly consolidation of industrial projects within the county that are currently scattered and inefficient in land use, guiding them to relocate to industrial clusters. Support eligible enterprises or government platform companies in utilizing industrial land to construct high-standard factory buildings, technology incubators, and similar facilities, and provide development platforms for start-ups and small and micro enterprises through leasing, transfer, or joint venture and cooperative operations.

  (3) Strictly enforce industrial land use standards. Unless there are special requirements related to production processes or workplace safety, the floor area ratio (FAR) for industrial land shall not be less than 1.0, the building coverage ratio shall not be less than 40%, and the green space ratio shall not exceed 20%. Land use right holders who increase the floor area ratio or utilize underground space without changing the industrial land use designation shall not be required to pay additional land transfer fees.Explore and implement the “Industrial Neighborhood Center” model, encouraging management agencies of industrial clusters to organize the centralized allocation of supporting facilities—such as administrative offices, business exhibition spaces, community services (including rental housing), and parking lots—by designated zones. For projects with large land areas that genuinely require the independent construction of administrative offices and community service facilities, the land area occupied by such facilities shall not exceed 7% of the total land area, and the floor area shall not exceed 15% of the total floor area.

  II. Revitalizing Existing Land and Improving Utilization Efficiency

  (4) Promote the Absorption of Approved-but-Unsupplied Land by Linking Existing Stock to New Allocations. Implement the “linking existing stock to new allocations” mechanism for construction land, using the revitalization of existing stock to determine new allocations, and strictly controlling the use of new construction land plan quotas. For newly recruited investment projects, priority should be given to utilizing approved-but-unsupplied land for site selection.For projects where land supply is delayed due to land acquisition and demolition issues or inadequate infrastructure, fiscal funds and land reserve bond funds should be coordinated to implement land reserves. Efforts should be accelerated in land acquisition and demolition, compensation and resettlement, preliminary development, and infrastructure construction to create conditions for expediting land supply. For land where the current land use status has not changed but acquisition is genuinely impossible or no longer pursued, the clearance of land approval documents should be conducted in a standardized and orderly manner, and the reclaimed quotas and fees may be reused.

  (5) Actively and prudently address land that was approved but not supplied and subsequently put into use. Guided by the principles of building a trustworthy government, optimizing the business environment, addressing legacy issues pragmatically, and ensuring strict compliance with regulations, for industrial investment projects approved but not supplied by the end of 2018 that were subsequently put into use, after investigation, verification, and acceptance by county-level or higher governments,if the project complies with territorial spatial planning and industrial access policies, operates effectively, demonstrates high output per mu, and has a good track record of contract fulfillment, the project’s commencement date may be used as the starting point for land transfer. A reasonable reserve price shall be determined, and land use procedures shall be completed by the end of 2021, followed by the registration of real estate rights. For land designated for urban public service and infrastructure projects that was approved but not supplied and subsequently put into use, the allocation decision document may be issued directly to the relevant rights holder, and real estate registration shall be processed.

  For township enterprises that originally used collective construction land in accordance with the law, if they had applied for land expropriation before January 1, 2020, obtained land use approval documents, and carried out land expropriation in accordance with the law, a “State-Owned Construction Land Use Right Grant Contract” (hereinafter referred to as the “Contract”) may be signed directly with the enterprise by the end of 2021, and real estate registration shall be processed in accordance with the law.

  (6) Prioritize utilization in the disposal of idle land. For idle land resulting from government actions or factors such as petitioning and social stability, obstacles to commencement of construction must be removed to facilitate the early start of projects; where construction cannot commence in the short term, local governments may arrange for temporary use, and the land user may resume construction once the project meets the conditions for commencement.For idle land resulting from enterprise-related causes, a comprehensive approach combining administrative, economic, and legal measures shall be employed to urge enterprises to commence construction within a specified timeframe; enterprises shall be permitted to revitalize and utilize industrial land through means such as pre-registration for transfer or cooperative development.Where land cannot be developed due to factors such as planning adjustments, high-voltage corridors, military restrictions, cultural heritage protection, force majeure, or mutual breaches of contract between the government and the enterprise, the land use rights may, upon mutual agreement, be reclaimed for compensation or exchanged through a negotiated agreement. For enterprises that have commenced construction but have not obtained a construction permit or filed a commencement report, relevant departments shall promptly and appropriately address the situation in accordance with regulations and complete the necessary construction procedures.

  For idle or underutilized industrial land involving judicial seizures or mortgages, the government shall establish a dedicated task force to proactively coordinate with judicial authorities and financial institutions to clarify the debt-credit relationships associated with such land. Through various means—such as utilizing land reserve agencies or government platform companies to act as intermediaries and introducing social capital—the government shall dispose of such land in accordance with the law to facilitate debt resolution and the revitalization of land assets.

  (7) Innovate models to revitalize low-efficiency industrial land. Research and formulate criteria for identifying low-efficiency industrial land and work plans for redevelopment; conduct comprehensive surveys; establish an industrial land database; implement dynamic supervision; and effectively advance the revitalization and utilization of land occupied by projects that have been suspended or delayed, where construction is limited despite fenced-off areas, or where production has ceased.Integrate innovative approaches and comprehensively apply relevant policies. Through the promotion of mixed-use and multi-level development, large-scale integrated development, and renewal and upgrading development models, adopt a “one-site-one-policy” approach to advance the revitalization of underutilized industrial land on a case-by-case basis. Encourage and guide market entities to participate, explore the establishment of a balancing mechanism that takes into account the interests of all parties, and promote the redevelopment of underutilized industrial land. Except under special circumstances, when enterprises apply to change the land use designation of underutilized industrial land, the government shall uniformly reclaim the land before reallocating it.

  III. Optimize Supply Methods and Enhance Support Capabilities

  (8) Implement flexible land grants for industrial land. Encourage the use of industrial land through flexible-term grants, lease-to-own arrangements, combined lease-and-grant models, and long-term leases. For newly added industrial land (including land for production-oriented service industries), implement a land supply policy of “grant terms not exceeding 20 years plus conditional renewal.” The starting price for land grants may be calculated based on the term, but must not be lower than the term-adjusted minimum price for industrial land;Upon expiration of the concession period, if an assessment determines that the conditions for renewal are met, renewal procedures may be processed through mutual agreement. For major investment projects at the provincial level or above, strategic industrial projects, and projects utilizing idle or underutilized existing construction land, the flexible concession period may be reasonably extended within the statutory maximum term following a comprehensive assessment.

  (9) Promote the “Standard Land” system for industrial land concessions. Establish a “Standard Land” concession system characterized by “land preparation according to standards, land supply with clear standards, land use in compliance with standards, and land management against standards,” and gradually implement the “Standard Land” system for industrial land concessions throughout the province.When granting land, control indicators such as investment intensity per mu, tax revenue per mu, floor area ratio, and environmental standards, as well as construction requirements including fire safety and supporting facilities, shall be included in the grant plan and announced in a single notice. Implement the “Standard Land + Agency Service System” to significantly reduce approval timelines; explore the “Standard Land + Notification and Commitment System” approval model to achieve “construction commencement upon land acquisition.”

  (10) Promote the development of new industrial land. Localities are encouraged to formulate policies regarding supporting land for new industrial projects, supporting land use for headquarters, R&D centers, design centers, testing and inspection centers, and settlement centers.Provided they comply with the control detailed plan, land for new industries may be used for mixed-use or compatible purposes, provided that the industrial land area accounts for no less than 70% and the gross floor area for industrial use accounts for no less than 80% of the total gross floor area. The starting price for land grants may be comprehensively determined based on factors such as the appraised value of the corresponding land use and the proportion of property retained by the developer.Once new industrial projects meet the conditions stipulated in the Contract and the “Standard Land” Performance Supervision Agreement for Industrial Projects (hereinafter referred to as the Agreement), and in compliance with laws and regulations, they are permitted to apply for real estate subdivision and transfer registration for industrial premises in accordance with relevant provisions; however, the supporting production and living service facilities must not be subdivided, transferred, or mortgaged.

  IV. Establishing Long-Term Mechanisms to Promote Efficient Land Use

  (11) Improve the secondary market allocation mechanism for land resources. Accelerate the development of the secondary land market, formulate implementation rules for the transfer, lease, and mortgage of construction land use rights, establish a unified urban-rural trading platform, implement tax and fee reduction policies in accordance with the law, reduce transaction costs, promote the smooth circulation of land resources, and enhance the efficiency of allocating existing land resources.Regulate the subdivision and transfer of industrial land. Standard factory buildings may be subdivided based on enclosed spaces defined by ownership boundaries, such as individual buildings or floors, provided they are capable of independent use. Local authorities must specify minimum subdivision areas and ensure that the land and building uses remain unchanged;Except for plots specified in the Contract (or the State-Owned Construction Land Allocation Decision, hereinafter referred to as the “Allocation Decision”) as ineligible for subdivision, plots that can be issued separate planning and design conditions, have independent entrances and exits, meet fire safety requirements, and satisfy the conditions stipulated in the Contract (or the Allocation Decision) and the Agreement are encouraged to be subdivided and transferred upon approval, or reclaimed by the government for compensation and re-supplied.

  (12) Establish a full-lifecycle management mechanism for industrial project land. Strengthen dynamic oversight throughout the entire land use period. By refining rules regarding industrial land sector access, output-per-mu efficiency evaluation, and land use right termination, focus on pre-project standard compliance, in-process performance monitoring, and post-project credit management. In accordance with the principle of “who proposes, who is responsible, who supervises,” incorporate project investment, output, energy conservation, and environmental protection into routine management.Explore the implementation of a performance bond system for projects, with performance bonds to be submitted in the form of financial institution guarantees. Improve the credit-based regulatory system and impose joint disciplinary measures in accordance with relevant regulations on enterprises that are seriously in breach of trust or fail to cooperate with government policies on the disposal of idle and inefficient land.

  (13) Improve the incentive and accountability mechanisms for land conservation and intensive use. Focusing on the revitalization of existing low-efficiency land, using land efficiency evaluations as a tool, and aiming to simultaneously enhance land conservation levels and output efficiency, launch the “Efficiency Enhancement in 100 Industrial Clusters” initiative. Provide incentives for clusters demonstrating significant results and hold accountable those with slow progress.Organize and conduct evaluations of land use efficiency in industrial clusters. Those with favorable evaluation results will be rewarded with additional construction land quotas and given priority support for relocation, expansion, and upgrading; those with poor evaluation results will have their additional construction land quotas reduced, and approvals for new construction land will be suspended.All localities must strengthen organizational leadership, enhance interdepartmental coordination, refine supporting policies, establish rigorous procedures, and foster a supportive public opinion environment. Through comprehensive measures, they should actively, steadily, and comprehensively advance the conservation, intensive use, quality improvement, and efficiency enhancement of land in industrial clusters.The Provincial Department of Natural Resources shall strengthen supervision and guidance, incorporate local work performance into the scope of natural resources inspections, promptly address issues encountered during implementation, and report major developments to the Provincial Government in a timely manner. Localities and individuals that fail to fulfill their regulatory duties, resulting in serious land violations, shall be held strictly accountable.

  All types of high-tech industrial development zones, economic and technological development zones, and industrial parks across the province shall implement these guidelines.

  Attachment: 1. Management Measures for the Grant of “Standard Land” for Industrial Use in Henan Province

     2. Several Measures of Henan Province for Revitalizing Low-Efficiency Industrial Land

People’s Government of Henan Province

November 21, 2020

  Attachment 1


Administrative Measures for the Concession of "Standard Plots" for Industrial Land in Henan Province

  Article 1: To deepen the reform of market-based allocation of land resources, promote the improvement of quality and efficiency in the province’s industrial clusters, and encourage the economical and intensive use of land, these Measures are formulated to establish a system for the transfer of “standard plots” of industrial land (hereinafter referred to as “standard plots”) and implement full-lifecycle management, in accordance with the actual conditions of the province.

  Article 2: “Standard Land” refers to plots of state-owned construction land designated for industrial use in territorial spatial planning (currently comprising the Master Plan for Land Use and Urban and Rural Planning), which, following the completion of regional assessments, have control indicators—such as investment intensity per mu, tax revenue per mu, floor area ratio, and environmental standards—clearly defined as “standards” for proposed land transfers.

  The transfer of “Standard Land” refers to the development of land reserves in accordance with the “standards,” the transfer of land with the “standards” attached, and the simultaneous signing of the “Contract for the Grant of State-Owned Construction Land Use Rights” (hereinafter referred to as the “Contract”) and the “Agreement on Performance Supervision for Industrial Project ‘Standard Land’” (hereinafter referred to as the “Agreement”).Enterprises shall utilize the land in accordance with the “standards,” and relevant departments shall conduct joint supervision throughout the entire lifecycle in accordance with the “standards,” thereby establishing a transfer system characterized by “developing land according to standards, supplying land with clear standards, using land in compliance with standards, and managing land against standards.”

  Article 3: The management agency of the industrial cluster zone shall, in accordance with the requirements of the "Guiding Opinions of the General Office of the Henan Provincial People’s Government on the Implementation of Regional Assessments for Engineering Construction Projects" (Yu Zheng Ban [2019] No. 10), uniformly organize regional assessments for matters within the zone, including land surveying, mineral resource overburden, geological hazards, energy conservation, soil and water conservation, cultural relics protection, flood impact, seismic safety, climatic feasibility, and environmental status evaluation, and ensure the sharing and application of the assessment results;For individual projects that meet the conditions for applying the results of regional assessments, the relevant industry authorities shall directly utilize the relevant regional assessment results and shall not require applicants to organize separate assessments or evaluations.

  Article 4: For land parcels intended for transfer as “standard land,” preliminary development and consolidation, infrastructure construction, and supporting public service facilities shall be implemented in accordance with the requirements for “standard land” use, thereby creating high-quality land with clear property rights, complete supporting facilities, superior conditions, and full compliance with all requirements for “standard land” use.

  Article 5: When supplying land, municipal and county-level governments shall organize departments such as development and reform, industry and information technology, natural resources, ecological environment, housing and urban-rural development, and taxation to formulate a “3+N+1” control indicator system based on standards no lower than those set by the province. This system shall be incorporated into the land transfer conditions and published together with the transfer announcement.

  "3" refers to investment intensity per mu, tax revenue per mu, and floor area ratio. Provincial-level departments shall establish minimum entry standards by region and industry and publish them periodically.

  “N” refers to other control indicators such as output value per mu, number of employees, standards for the provision of administrative office and living service facilities, work safety requirements, and environmental standards (including spatial access requirements, pollutant emission standards and total emission control requirements, environmental quality control standards, and industry access requirements). These shall be determined by local authorities based on actual conditions and subject to dynamic adjustment.

  “1” refers to the term of the land grant. For industrial land granted under the “standard land” system, the term shall generally be set at no more than 20 years; upon expiration, renewal procedures may be processed by mutual agreement following an assessment.

  Article 6: Upon acquiring a “standard plot,” the land-using enterprise shall, concurrently with signing the Contract with the natural resources department, sign an Agreement with the industrial cluster management authority. This Agreement shall specify the development and construction conditions to be met within the agreed timeframe, requirements for commencement of production and reaching full production capacity, liability for breach of contract in the event of failure to meet agreed standards, and management provisions extending through project exit.The industrial cluster management authority or relevant departments of municipal or county-level governments may, based on the actual circumstances of the project, agree to implement a performance bond system or adopt other market-oriented measures to promote the efficient utilization of “standard land.”

  Drawing on the experience of the “One-Visit” reform, and provided the enterprise consents, the industrial cluster management authority shall assign dedicated personnel to provide free full-process or partial agency services for approval matters related to “standard land” projects. For approval matters where non-compliance with approval conditions can be corrected through ex-post supervision and will not result in serious consequences, a notification and commitment system shall be implemented.Municipal and county-level governments shall organize relevant departments to clarify and publish a list of approval items subject to the notification and commitment system, along with the relevant requirements. When signing the Contract or Agreement, the applicant shall simultaneously sign the “Standard Land” Enterprise Credit Commitment Letter. Relevant departments shall make approval decisions directly based on the applicant’s credit commitment and other circumstances, enabling enterprises to “commence construction immediately upon land acquisition.”

  Article 7: Land-using enterprises shall commence and complete construction on time and commence and achieve full production capacity as stipulated in the “Contract” or “Agreement.”

  If an enterprise fails to commence construction, complete the project, or commence production by the agreed-upon time, it may apply for a one-time extension by signing a supplementary agreement to redefine the commencement, completion, or production dates; if construction, completion, or production has still not commenced by the extended deadline, the enterprise shall bear corresponding liability for breach of contract.

  Article 8: Local authorities shall establish and improve a comprehensive, full-process, and full-chain supervision system, with industrial cluster management agencies taking the lead in organizing joint supervision in accordance with the “Standards.”

  Upon project completion, the housing and urban-rural development department shall take the lead in organizing a joint final inspection of the construction project. If the project fails the joint inspection, the project owner shall be urged and guided to rectify the issues within a specified timeframe (not exceeding two years), and relevant punitive measures shall be implemented.

  After the project reaches full production capacity, within the agreed timeframe, the industrial cluster management authority shall lead relevant departments in conducting a one-time joint acceptance inspection of the indicators specified in the “Contract” and “Agreement.” If the project fails the acceptance inspection, the project owner shall be urged and guided to rectify the issues within a specified timeframe (with a maximum rectification period of no more than two years), and relevant reward and penalty measures shall be implemented. A re-inspection shall be conducted after rectification; if the project still fails to meet the standard requirements, the project shall be guided to negotiate an exit within a specified timeframe.

  The specific procedures for joint completion acceptance and full-capacity acceptance shall be formulated by municipal and county-level governments in coordination with relevant departments.

  Article 9: Industrial clusters shall implement the withdrawal of industrial land use rights based on the Contract, Agreement, and performance evaluation results. Where circumstances for the withdrawal of land use rights as stipulated in the Contract or Agreement are met, the grantor may reclaim the construction land use rights in accordance with the agreement. Regarding compensation for above-ground structures, the land grant contract may stipulate in advance that such structures be disposed of through methods such as residual value compensation, gratuitous reclamation, or restoration to the original condition by the grantee.Where the transfer of land use rights is permitted under the terms of the Contract or Agreement, the transferee may transfer the land use rights in accordance with the law, and the rights and obligations stipulated in the Contract or Agreement shall be transferred accordingly.

  Article 10: The provincial natural resources department shall, in conjunction with relevant departments, establish a province-wide “Standard Land” full-lifecycle information management platform based on the provincial government cloud, government service network, and provincial data sharing and exchange platform. The management bodies of industrial clusters shall incorporate the implementation status of the “Agreement” and “Contract” into the information management platform to ensure information sharing across the provincial, municipal, and county levels, thereby enabling joint supervision by relevant departments and “cloud-based land management.”

  Article 11. The development and reform department, in conjunction with relevant departments, shall incorporate the development and utilization of industrial land into the enterprise credit system. Enterprises with good credit and those with poor credit shall be listed on the provincial social credit system’s “Red List” and “Black List,” respectively, and this information shall be pushed to the provincial public credit information platform and the Credit China (Henan) website to achieve the open sharing of credit information.

  Article 12: In accordance with the principle of piloting first and phased implementation, the transfer of “standard land” shall be carried out in an orderly manner. In 2020, this shall be implemented first in Zhengzhou, Kaifeng, Puyang, and Changge; other eligible localities may implement it simultaneously. By the end of 2021, it shall be rolled out province-wide, and efforts shall be made to explore its extension to other investment projects.

  Municipal and county-level governments may formulate specific implementation rules based on these Measures, taking into account local conditions.

  Appendix 2


Several Measures of Henan Province for Revitalizing Low-Efficiency Industrial Land

  The revitalization of low-efficiency industrial land refers to the secondary development or reuse of land carried out by local governments, relevant departments, and industrial cluster management agencies in accordance with relevant regulations and procedures. This is achieved through industrial transformation and upgrading, land restructuring and repurchase, “replacing old industries with new ones,” “phasing out secondary industries and optimizing secondary industries,” and increasing floor area ratios, with the goal of improving land use efficiency and input-output levels.To accelerate the revitalization of low-efficiency industrial land in industrial clusters, further improve the level of land conservation and intensive use, and promote the “second-stage development” of industrial clusters and high-quality economic development at the county level, the following measures are formulated in accordance with the actual conditions of our province.

  I. Standardize Identification and Ascertain the Actual Status of Low-Efficiency Industrial Land

  (1) Standardize Identification Criteria. Low-efficiency industrial land refers to existing industrial land with clear ownership rights that is characterized by scattered layout, outdated facilities, extensive land use, unreasonable land use, backward industries, or suspended construction and production. It primarily includes three types:

  1. Industrial Transformation Category: Land used for industries prohibited or phased out by the state; land that fails to meet environmental protection standards or work safety requirements; land designated for industrial transformation and upgrading, as well as for “phasing out secondary industries and optimizing secondary industries” or “relocating from urban areas to industrial parks”; and land included by the government in the scope of “closure, suspension, merger, and transformation.”

  2. Extensive Land Use Category: Industrial land where control indicators—such as investment intensity, floor area ratio, building coverage ratio, output per mu, and tax revenue per mu—are significantly below local industry averages; and industrial land with extensive vacant areas where more land is fenced off than developed.

  3. Suspended Construction and Production Category: Industrial land where enterprises are in a state of suspended or delayed construction, or suspended or partially suspended production, and have not generated operating profits for over two years.

  The criteria for identifying low-efficiency industrial land shall be formulated and implemented by municipal and county-level governments in collaboration with industrial cluster management agencies and relevant departments—including development and reform, industry and information technology, natural resources, ecological environment, housing and urban-rural development, and taxation—based on territorial spatial planning, industrial policies, economic conditions, and enterprise production and operation status.

  (2) Conducting a Preliminary Survey and Establishing a Database. In accordance with the requirements of the “Implementation Plan for the Redevelopment of Low-Efficiency Urban Land in Henan Province,” municipal and county-level natural resources departments, in conjunction with relevant departments, shall organize and carry out a special survey of low-efficiency industrial land in industrial clusters to establish a database of such land. After review and consolidation by the natural resources departments of prefecture-level cities, the Jiyuan Demonstration Zone, and counties (cities) under direct provincial administration, the database shall be submitted to the Provincial Department of Natural Resources for filing and inclusion in the provincial database.

  (3) Formulation of Revitalization Plans. With the goal of conserving and intensively utilizing land, and based on the results of the special survey, municipal and county-level governments shall focus on leading industries to promote the quality and efficiency of industrial agglomeration zones. This shall be achieved by coordinating factors such as industrial structure upgrading, strengthening industrial chains, and fostering high-quality industrial clusters. In accordance with territorial spatial planning and relevant plans, and in full alignment with the development plans of industrial agglomeration zones, and following the key points for the preparation of urban low-efficiency land redevelopment plans,organize the formulation of a 3–5-year revitalization and utilization plan for low-efficiency industrial land in industrial agglomeration zones. This plan shall specify objectives and tasks, scale and layout, nature and use, implementation schedule, and supporting measures. After review by the higher-level natural resources department, the revitalization and utilization plan for low-efficiency industrial land in industrial agglomeration zones shall be approved and implemented by the government at the same level and made public.

  II. Categorized Revitalization to Promote Efficient Land Reuse

  (4) Mixed-Use and Multi-Level Development. Under the premise of compliance with national spatial planning, encourage the use of existing industrial land to develop new industries and business models supported by the state—such as advanced manufacturing, new infrastructure, productive and high-tech services, product improvement, industry-academia-research collaboration, and entrepreneurship and innovation platforms—through multi-level development and mixed-use land utilization.

  (5) Comprehensive Development of Contiguous Plots. Original land use right holders, redevelopment entities, government reserve agencies, or investment platforms shall, through means such as restructuring or acquisition, comprehensively revitalize multiple adjacent plots of underutilized land in a contiguous and integrated manner.

  (6) Renewal and Upgrading Development. Through government guidance and market-led approaches, promote the gradual transformation and upgrading of enterprises that have suspended construction or production, achieving the goal of “phasing out secondary industries and optimizing secondary industries,” thereby revitalizing and reusing the original low-efficiency industrial land.

  III. Implementing Multiple Measures to Accelerate the Revitalization of Underutilized Land

  (7) Implementation of Transition Period Policies. For projects that utilize existing industrial land for transformation and upgrading to develop new industries, business models, or sectors supported by the state, the land may continue to be used for its original purpose upon approval by municipal or county-level governments. The transition period shall be five years; after the expiration of this period, land use procedures for the new purpose shall be processed in accordance with the law.

  (8) Policies on Land Prices and Taxes. For the comprehensive utilization of above- and below-ground space, where the original land use right holder appropriately increases the floor area ratio without altering the industrial land use designation, no additional land transfer fees shall be required. Through government guidance and market-driven mechanisms, where the original land use right holder revitalizes and reuses the original low-efficiency industrial land, and the new industrial projects fall under government-encouraged or key-supported categories, relevant tax preferential policies may be enjoyed in accordance with regulations.

  (9) Policies on Subdivision, Transfer, and Registration. Enterprises occupying low-efficiency industrial land characterized by “more perimeter than building area” are encouraged to subdivide and transfer idle land or have such land lawfully reclaimed by the government for reuse. When subdividing and transferring industrial land involving standard factory buildings, the subdivision may be based on enclosed spaces defined by ownership boundaries—such as individual buildings or floors—used independently; however, the land and building uses must not be altered.For projects involving new industries, once the conditions stipulated in the “Contract for the Grant of State-Owned Construction Land Use Rights” and the “Performance Supervision Agreement for Industrial ‘Standard Land’ Projects” are met, the transfer and registration of industrial buildings may be divided in accordance with regulations and contractual terms; however, living service facilities may not be divided, and land use rights acquired through shared ownership shall not be divided separately.

  (10) Policies on Comprehensive Development of Contiguous Plots. Where the original land use right holder, the redevelopment implementer, a government land reserve agency, or an investment platform revitalizes multiple adjacent, underutilized plots through reorganization, acquisition, or other means, and it is indeed necessary to construct production service, administrative office, and living service facilities on-site, the land area occupied by such facilities shall not exceed 7% of the total project land area (and the floor area shall not exceed 15% of the total floor area);Scattered plots of land that are difficult to develop independently, such as corner plots, enclaved plots, and isolated plots, may be developed collectively; however, the area of a single scattered plot shall generally not exceed 3 mu, and the cumulative area shall not exceed 10% of the total area of the redevelopment project. Upon application, scattered plots may be consolidated and registered in accordance with laws and regulations.Where scattered plots involve new construction land or require amendments to the Master Plan for Territorial Space (currently the Master Plan for Land Use and Urban-Rural Planning; hereinafter the same), they may be included in batch land allocations for approval in accordance with the law.

  (11) Policies for Mechanisms to Compel Revitalization. A revitalization deadline shall be clearly established for each plot of low-efficiency industrial land (especially those where construction or production has been suspended). For plots where revitalization remains uncompleted by the deadline, differentiated resource allocation policies shall be implemented based on the comprehensive enterprise classification evaluation results from the Provincial Development and Reform Commission. This includes appropriately increasing prices for water supply, electricity, and sewage treatment fees, while imposing corresponding restrictions on water and electricity supply volumes;Enterprises classified as Category C in the comprehensive evaluation shall be prohibited from receiving new land allocations. Localities must refine policy measures regarding land use, water consumption, electricity consumption, energy use, and pollution discharge to establish a differentiated policy mechanism that promotes the survival of the fittest and improves the output efficiency per mu of industrial land. Enterprises that fail to complete revitalization and development within the stipulated timeframe, along with their controlling shareholders, shall be restricted from participating in other land auctions, and any fiscal subsidies or rewards related to the enterprise shall be revoked, thereby compelling the enterprise to voluntarily withdraw.

  (12) Other Supporting Policies. Where projects cannot proceed due to changes in industrial policies or other reasons, municipal and county-level governments shall uniformly reclaim the land in accordance with the law and reallocate it in compliance with territorial spatial planning and the “retire second-tier, optimize second-tier” requirements. Municipal and county-level governments shall actively expand financing channels, support financial institutions in innovating financial products, fully leverage the role of social capital, and increase investment in the revitalization of low-efficiency industrial land.The role of market allocation shall be fully leveraged to actively guide the transfer and revitalization of low-efficiency industrial land through the secondary market, reduce transaction costs associated with the exit, trading, and corporate mergers and reorganizations of such land, and promote the circulation of land resources.

  Municipal and county-level governments may formulate specific implementation rules based on local conditions. The revitalization of low-efficiency industrial land outside industrial clusters may be implemented by reference to these provisions.


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