Original Title: Notice on Issuing the "Several Provisions on Strengthening the Management of Industrial Land Concessions in Shanghai"
Article 1 (Purpose and Legal Basis)
To comprehensively promote the high-quality utilization of land resources, deepen the reform of market-based allocation of industrial land, strengthen the full-lifecycle management of industrial land concessions, and achieve more intensive, efficient, and sustainable high-quality utilization of industrial land, these Provisions are formulated in accordance with the "Land Administration Law of the People’s Republic of China," the "Measures for the Concession of Land Use Rights in Shanghai," and the "Notice of the Shanghai Municipal People’s Government on Issuing Several Opinions on Comprehensively Promoting the High-Quality Utilization of Land Resources in the Municipality," among others.
Article 2 (Definitions and Scope of Application)
The term “full-lifecycle management of industrial land concessions” as used in these Provisions refers to the process of conducting dynamic assessment and supervision of a project’s land utilization status throughout the entire concession period, with the aim of improving the quality and efficiency of land use. This process utilizes the contract for the paid use of construction land use rights (hereinafter referred to as the “concession contract”) as a platform. By improving mechanisms such as industrial access standards, comprehensive benefit assessment, and land use right termination, it integrates economic, social, and environmental factors—including project construction, investment, output,energy conservation, environmental protection, and local employment—into the contract management framework, thereby achieving a systematic, refined, and dynamic management of industrial land use.
For the purposes of these provisions, “industrial land” includes industrial land (industrial project-type and standard factory building-type) and R&D land (industrial project-type and general-purpose). Newly supplied industrial land, as well as the upgrading, revitalization, and transformation of existing industrial land; the conversion of allocated land to granted land; the transfer of surplus land parcels; and the conversion of other existing construction land into industrial land shall all be implemented in accordance with these provisions. Other industrial land, such as warehousing, shall be implemented by reference to these provisions.
The term “park platform” as used in these provisions refers to platform-type enterprises responsible for the construction, operation, and management of industrial parks. The term “leading enterprise” as used in these provisions refers to enterprises that hold a leading position in their industry and possess the capability to build upstream and downstream industrial chains. Park platforms and leading enterprises, upon recognition by the district government, shall comply with the relevant provisions of these regulations.
Article 3 (Basic Principles)
We adhere to the principles of “measuring success by output per mu, economic benefits, energy consumption, and environmental performance,” aiming to enhance the economic carrying capacity and output levels per unit of land and advance the governance of industrial spatial planning.
We shall adhere to the laws governing the full life cycle of industrial projects and reasonably determine flexible lease terms for industrial land.
We shall implement comprehensive management of all land use factors, clearly defining binding economic, social, and environmental indicators for industrial land, including input per unit of land, output, energy conservation, environmental protection, and local employment.
We shall implement comprehensive management of the entire land use process, covering project commencement and completion, investment and production, performance evaluation of land use, and the termination of land use rights.
Article 4 (Management Responsibilities)
The Municipal Planning and Natural Resources Bureau is responsible for the planning and management of industrial land use within the municipality.The Municipal Commission of Economy and Information Technology and the Municipal Development and Reform Commission, in conjunction with the Municipal Bureau of Planning and Natural Resources, shall be responsible for formulating the city’s industrial access standards and industrial land standards, as well as establishing and implementing the indicators, standards, methods, and procedures for land use performance evaluations. The Municipal Bureau of Ecology and Environment, in conjunction with the Municipal Commission of Economy and Information Technology and the Municipal Bureau of Planning and Natural Resources, shall be responsible for supervising and managing environmental protection on industrial land within the city. Other relevant municipal departments shall perform their respective duties in terms of coordination, service provision, and supervision.
District governments and relevant subordinate agencies are responsible for organizing, implementing, and coordinating the high-quality utilization of industrial land within their respective jurisdictions. District departments of planning and natural resources, industry, investment, and ecological environment shall implement these provisions in a coordinated manner in accordance with their respective responsibilities.
Relevant departments of district governments or industrial park management agencies shall be specifically responsible for tasks such as project performance evaluation.
Article 5 (Working Mechanism)
The municipal and district governments shall improve the coordination mechanism for industrial land management. This mechanism shall consist of members from departments including Planning and Resources, Economy and Information Technology, Development and Reform, Science and Technology, Ecology and Environment, Housing and Urban-Rural Development, and Human Resources and Social Security. These departments shall be responsible for reviewing industrial project approvals and evaluating indicators such as project investment, output, energy conservation, environmental protection, and local employment; reviewing the results of land use performance assessments and major decisions regarding the continuation of use or revocation of construction land use rights; coordinating the progress of work across departments; and improving supporting measures.
Article 6 (Planning Management)
(1) Optimize the spatial layout of industrial land. Guided by the planning framework of “industrial bases—industrial communities—scattered industrial plots,” industrial bases shall primarily serve manufacturing functions; industrial communities shall emphasize the integration of industry and urban areas and mixed-use functions; and scattered industrial plots shall primarily ensure the production needs of existing enterprises. New industrial project sites shall, in principle, be located within industrial bases or industrial communities, while existing industrial projects shall be subject to differentiated management in accordance with the planning of their respective regions.
(2) Determine the floor area ratio (FAR) and building height of industrial land based on industrial needs. The FAR for industrial land shall generally not be less than 2.0; for industrial land using special processes, the FAR may be determined based on actual conditions. The FAR for R&D land may be determined by reference to commercial and office land in the same area, with the FAR for general-purpose R&D land not being less than 3.0.
Mixed-use development of industrial land is encouraged. Within single-use industrial land, the proportion of other industrial uses and living support facilities may not exceed 30% of the total above-ground floor area, with the proportion allocated to living support facilities such as retail, dining, and dormitories not exceeding 15% of the total above-ground floor area. Mixed land use arrangements that benefit from complementary functions are encouraged, and the functional integration of public service facilities and municipal infrastructure is to be strengthened.
The scale and layout of green spaces within industrial bases and industrial communities shall be coordinated holistically, with a focus on concentrated and integrated use. Park management agencies or other competent authorities may determine the green space ratio for individual industrial projects based on the park’s specialized greening plan approved by the greening department.
(3) Efforts to improve the efficiency of industrial land use are encouraged. Regional assessments shall be implemented, and planning adjustment procedures shall be streamlined. Planning parameters for industrial land, such as floor area ratio and building height, shall follow the detailed planning implementation and refinement procedures in accordance with relevant regulations. Where adjustments to the control detailed plan are involved, the implementation plan shall be reviewed by the respective districts and submitted for approval in accordance with prescribed procedures.
Article 7 (Industrial Access)
Further strengthen industrial guidance; enhance the management of industrial project access in accordance with the Industrial Land Use Guidelines; strictly prohibit the allocation of land to prohibited industrial projects; and strictly control land use for restricted industrial projects.
Optimize and improve industrial land standards, and regularly update the minimum standards for investment intensity and output efficiency of industrial land in the municipality. Strengthen the review system for industrial project access, clearly define requirements for industrial land projects regarding industrial type, investment intensity, output efficiency, energy conservation, environmental protection, and local employment, and incorporate these into land grant contracts as the basis for land use performance evaluations.
Article 8 (Land Supply Methods)
The supply of industrial land shall be carried out in accordance with relevant national and municipal regulations. Through a standardized industrial land supply mechanism, ensure the continuous, adequate, and proactive supply of industrial land.
Industrial land for industrial projects and R&D land for industrial projects shall be supplied through a “land-with-project” public listing method; industrial land for standard factory buildings and general-purpose R&D land shall be supplied through public bidding, auction, or listing. Among these, land granted to industrial park platforms and leading enterprises may be supplied through the “land-with-project” public listing method.
The use of industrial land through “lease-to-own” or long-term lease arrangements is encouraged. Under such arrangements, the successful bidder or tender winner shall first lease the land for construction and industrial operations; upon passing a comprehensive assessment, the land transfer procedures may be processed in accordance with the contract.
Article 9 (Land Concession Price)
Industrial land prices shall be managed in accordance with the bottom-line principle. The starting price for the transfer of industrial land may be set at no lower than the national minimum standard for industrial land transfers; the starting price for the transfer of R&D land may be set at no lower than the benchmark land price requirements for R&D land in this municipality.
Improve the industrial land pricing system and update mechanism centered on benchmark land prices and standard land prices. The starting price for the grant of industrial land shall be determined through collective decision-making after market evaluation, taking into account industrial policies and project performance.
For land granted under flexible-term arrangements, the grant price shall be adjusted annually based on the maximum term corresponding to the benchmark land price.
For supply arrangements involving lease-to-own, the total initial lease-to-own price and the land rent for the initial lease period shall be determined through collective decision-making following market appraisal; the land price for the subsequent conversion from lease to transfer shall be determined as the balance of the total lease-to-own price minus the rent already paid.
Article 10 (Land Concession Term)
A flexible-term land grant system shall be implemented for industrial land. In principle, the grant term for new industrial project-type industrial land shall not exceed 20 years. For major national and municipal industrial projects and strategic emerging industry projects, after being identified in accordance with relevant municipal regulations and procedures, the land shall be granted for the identified term, with a maximum of 50 years. The maximum term for standard factory building-type industrial land, industrial project-type R&D land, and general-purpose R&D land is 50 years.
Where land is supplied through long-term lease or a “lease-to-own” arrangement, the lease term shall not exceed 20 years. The total combined lease and grant term shall not exceed the statutory maximum grant term for the corresponding land use. For industrial land for industrial projects supplied via a “lease-to-own” arrangement, the total combined lease and grant term shall, in principle, not exceed 20 years.
Article 11 (Contract Expiration and Renewal)
Prior to the expiration of the industrial land use right, the holder of the construction land use right may submit an application for renewal to the grantor or lessor (hereinafter collectively referred to as the “grantor”). If the application complies with the national land and spatial planning and industrial development planning, meets energy conservation and environmental protection requirements, and passes a comprehensive evaluation, the holder may obtain the renewed construction land use right through a negotiated grant.The land price for renewal upon the expiration of a flexible-term contract may, following collective decision-making, be determined based on the price stipulated in the original grant contract, or through a comprehensive assessment that combines the price stipulated in the original grant contract with the benchmark land price for industrial land at the time of renewal.
If the holder of the construction land use right fails to submit an application for renewal, or submits an application but fails to meet the conditions following the assessment under Article 13 of these Provisions, the grant contract shall automatically terminate upon the expiration of the construction land use right, and the construction land use right shall be reclaimed in accordance with the law.
Article 12 (Management of Commencement, Completion, and Production Start-up)
The grant contract shall specify the project’s commencement, completion, and production commencement dates, as well as the methods for performance supervision and breach of contract resolution, based on the actual circumstances of the project and the opinions of relevant district government departments and park management agencies, to ensure the high-quality utilization of industrial land. Performance supervision shall be conducted in a phased and differentiated manner according to the contractually agreed stages of commencement, completion, and production commencement.In cases of breach of contract, liability for breach shall be pursued in accordance with the contract; in serious cases, the grant contract may be terminated and the right to use the construction land reclaimed in accordance with the contract.
Article 13 (Management of Full Production Capacity and Comprehensive Assessment)
Improve the land use performance evaluation system for industrial land projects. Land use performance evaluations for industrial land projects shall be conducted at the following stages: upon reaching full production capacity (production capacity assessment), every 3–5 years after reaching full production capacity (process assessment), and one year prior to the expiration of the usage term (expiration assessment). These evaluations shall be organized and implemented by relevant district government departments or industrial park management agencies in accordance with relevant laws, regulations, and the provisions of the land grant contract.
Article 14 (Voluntary Withdrawal Mechanism)
If, prior to the agreed commencement date of an industrial project or after reaching full production capacity, the holder of the right to use construction land is unable to develop, construct, or operate the project due to reasons attributable to the holder, the holder may apply to terminate the grant contract. Upon the grantor’s consent, the contract shall be terminated in accordance with the agreement, the right to use construction land shall be reclaimed, and the land premium for the remaining term shall be refunded as stipulated;Compensation for above-ground structures may be handled through methods such as residual value compensation, gratuitous recovery, or restoration to the original condition by the holder of the right to use the construction land, as agreed upon in advance and stipulated in the grant contract.
Article 15 (Mandatory Exit Mechanism)
The holder of the right to use construction land shall use the land in accordance with the development and utilization conditions stipulated in the contract. If any of the following circumstances exist, the grantor may, in accordance with the contract, reclaim the right to use construction land without compensation. Compensation for structures on the land may be handled in advance through methods such as residual value compensation, reclaiming the land without compensation, or requiring the holder of the right to use construction land to restore the land to its original condition, and such arrangements shall be stipulated in the grant contract.
(1) Where, pursuant to Article 12 of these Provisions, the holder of the right to use construction land fails to commence construction, complete construction, or commence operations on time due to reasons attributable to the holder—excluding force majeure—and the delay exceeds the maximum time limit specified in the contract;
(2) Where, pursuant to Article 13 of these Provisions, the holder is assessed by relevant district government departments or park management authorities during the full-capacity assessment or process assessment phases as failing to meet requirements, and the land use right is to be revoked in accordance with the contract;
(3) In accordance with Article 20 of these Provisions, where severe environmental pollution is caused during use and is confirmed by the environmental protection department.
In addition to the above circumstances, district governments may, based on local conditions and project specifics, establish additional mandatory exit requirements regarding local employment management and inefficient operations following production commencement and full capacity attainment, and incorporate these into the terms of the land grant contract.
Article 16 (Management of Transfer)
Further strengthen the management of the transfer of industrial land. The grant contract shall stipulate the following transfer management requirements and liabilities for breach of contract:
(1) Industrial land for industrial projects and R&D land for industrial projects
1. The right to use construction land shall not be transferred in whole or in separate parcels.
2. Properties on the land parcel shall be held as a whole.
3. Any changes to the capital contribution structure of the land use right holder, the equity structure of the project company, or the actual controller must be approved in advance by the grantor.
4. For the transfer of land and buildings as a whole, the grantor’s consent is required; alternatively, the grantor or the park management authority may exercise a right of first refusal in accordance with the provisions of the grant contract. Transfers of land and buildings as a whole shall be conducted through the city’s unified land transaction market.
5. Where an enterprise applies to transfer surplus construction land after meeting its own needs, the transfer may be conducted through the land transaction market via a “project-linked” listing method, provided that the planning department has clarified the planning and construction conditions for the portion to be transferred.
(II) Industrial Land for Standardized Factory Buildings
1. The right to use construction land may not be transferred in its entirety or in separate parcels.
2. Buildings on a plot may not be transferred by building, floor, or unit, but may be leased.
3. Any changes to the capital contribution structure of the land use right holder, the equity structure of the project company, or the actual controller must be approved in advance by the grantor.
4. For the transfer of land and buildings as a whole, the consent of the grantor is required; alternatively, the grantor or the park management authority may exercise a right of first refusal in accordance with the provisions of the grant contract. Transfers of land and buildings as a whole shall be conducted through the city’s unified land transaction market.
5. For standard factory-type industrial land held by park platforms and leading enterprises, no more than 50% of the property (excluding living support facilities) may be transferred. The proportion of property transferred directly by park platforms shall not exceed 60% of the transferable property, and the proportion transferred directly by leading enterprises shall not exceed 40% of the transferable property.Properties transferred by park platforms may not be transferred again within five years from the date of transfer registration. If transfer is indeed necessary after five years, the park platform or an agency designated by the district government may repurchase them at the agreed price on a priority basis; if the right of first refusal is waived, the properties may be transferred to enterprises or R&D institutions that meet industrial access requirements. Properties transferred by leading enterprises may only be repurchased by the leading enterprise or an agency designated by the district government at the agreed price.
(3) General-Purpose R&D Land
1. The right to use construction land may not be transferred in whole or in separate parcels.
2. Buildings on a plot may be leased; the holder of the land use right must retain ownership of at least 70% of the property, and the remaining portion may be transferred.
3. The transfer of land and buildings as a whole or in separate parcels requires the consent of the grantor; alternatively, the grantor or the park management agency may exercise a right of first refusal in accordance with the terms of the grant contract. Transfers of land and buildings as a whole shall be conducted through the city’s unified land transaction market.
4. Any changes to the capital contribution structure of the land use right holder, the equity structure of the project company, or the actual controller must be approved in advance by the grantor.
5. On general-purpose R&D land held by park platforms and leading enterprises, no more than 50% of the property (excluding living support facilities) may be transferred. The proportion of property transferred directly by park platforms shall not exceed 60% of the transferable property, and the proportion transferred directly by leading enterprises shall not exceed 40% of the transferable property.Properties transferred by park platforms may not be transferred again within five years from the date of transfer registration. If transfer is indeed necessary after five years, the park platform or an agency designated by the district government may repurchase them at the agreed-upon price on a priority basis; if the right of first refusal is waived, the properties may be transferred to enterprises or R&D institutions that meet industrial access requirements. Properties transferred by leading enterprises may only be repurchased by the leading enterprise or an agency designated by the district government at the agreed-upon price.
Any violation of the agreement, including unauthorized subdivision and transfer, alteration of the capital contribution ratio structure, alteration of the project company’s equity structure, or change in the actual controller, shall be addressed in accordance with the contractual provisions. The transfer method, industrial access requirements, and exit mechanisms for transferable properties shall be clearly specified in the land grant contract. The “lease-to-own” approach is encouraged, whereby transfer occurs only after the property lessee meets predetermined conditions regarding industrial performance, R&D investment, and other metrics.
Article 17 (Revitalization and Utilization of Existing Industrial Land)
Efforts to increase floor area ratio and enhance efficiency on existing industrial land are encouraged. Support is provided for “zero-land-increase” renovation projects to expand the proportion of mixed-use components and improve land utilization efficiency. In accordance with planning and industrial guidelines, no additional land premiums shall be levied for existing industrial and warehouse land where increases in floor area ratio and underground space are approved.
Support is provided for the revitalization and transformation of existing industrial land. The comprehensive transformation of contiguous areas of existing industrial land is encouraged. Professional entities such as industrial park operators are permitted to participate in consortia led by the original rights holders to complete land use procedures through the payment of land value supplements for existing land and carry out transformation and development.
For the self-initiated transformation and development of scattered industrial land, no less than 10% of the construction land must be provided to the government free of charge for the construction of public welfare facilities, public green spaces, and similar projects. If such public welfare construction land cannot be provided, no less than 15% of the ownership rights to above-ground commercial properties must be transferred free of charge to the relevant departments of the district government.
Article 18 (Registration Management)
In accordance with the requirements for the full lifecycle management of industrial land, the management of real estate registration for industrial land shall be effectively strengthened. All types of industrial land shall be registered based on the land area specified in the land grant contract and shall not be registered in separate parcels. For the self-held portion of industrial land, a unified real estate registration unit shall be established, and a single real estate ownership certificate shall be issued; separate certificates shall not be issued.
In accordance with the provisions of the land grant contract, key terms such as the conditions for the transfer of industrial land, the equity contribution ratio of the land use right holder, the equity structure, and the actual controller shall be noted in the remarks section of the real estate registry and the real estate title certificate. When the land use right holder applies for a transfer registration or an amendment to the key remarks, they shall provide the review and approval opinion from the planning and resources management department (the grantor).
For facilities and properties that must be transferred to government departments without compensation during the revitalization and transformation of existing projects, the receiving department specified in the contract may handle the initial registration in accordance with regulations.
Article 19 (Mortgage Management)
The principal debt secured by a mortgage on industrial land shall be limited to loans for the plot specified in the development and construction contract and shall not exceed the total land price stipulated in the contract. Situations such as mortgaging buildings under construction or newly constructed buildings together with the land shall be handled in accordance with the relevant provisions of the "Several Provisions on Real Estate Registration in Shanghai."
Upon the enforcement of a mortgage on industrial land, the eligibility of the bidder for the mortgaged property must be comprehensively determined by the planning and natural resources management department, the industrial management department, and the park management authority, and must comply with industrial policy guidelines and park planning requirements. Alternatively, in accordance with the provisions of the grant contract, the grantor or the park management authority may exercise the right of first refusal to acquire the right to use the construction land.
Article 20 (Protection of Soil and Groundwater Geological Environment)
Prior to the supply of industrial land, soil and groundwater geological environment quality testing shall be conducted in accordance with the requirements of the relevant competent authorities. During the stages preceding the transfer or recovery of industrial land, as well as during the process evaluation phase, soil and groundwater geological environment quality testing and assessment of the industrial land must be conducted, and the relevant testing reports shall serve as annexes to the grant contract.
If severe environmental pollution is caused during the use of industrial land, and upon determination by the relevant competent authorities, the grantor may terminate the contract in accordance with the contractual provisions, reclaim the land use rights without compensation, and, in accordance with the “polluter pays” principle, require the holder of the land use rights to bear the costs associated with the remediation of the soil and groundwater geological environment.
Article 21 (Construction of Underground Infrastructure)
The grant contract shall specify planning and construction conditions for underground construction projects, including their intended use, maximum footprint, starting depth, volume control requirements, connectivity with adjacent structures, and geological safety. When public infrastructure such as subways, tunnels, utility tunnels, underground roads, or civil defense projects is constructed for the public interest, the holder of the underground land use right shall comply with and cooperate in the development and utilization of the underground space.
Article 22 (Architectural Planning Management)
Improve planning and design standards for industrial buildings, standardize the approval process for architectural planning and design proposals, and ensure that the architectural form of buildings on industrial land is consistent with the type of industry and business model. The construction of residential-style building layouts and forms on industrial land is prohibited.
Article 23 (Information Sharing and Integrity System Development)
Establish a city-wide unified industrial land database and a joint supervision information system covering the entire land lifecycle. Incorporate economic, social, and environmental indicators for industrial land, as well as compliance status regarding land use conditions and utilization performance, into the shared platform. Through multi-departmental information sharing and collaborative management, establish a dynamic, real-time supervision and management mechanism to achieve integrated management throughout the entire process.
A joint supervision mechanism regarding land-related equity transfers shall be established among departments responsible for land, industry, and market regulation. The construction of an enterprise integrity system shall be promoted, and enterprise integrity information shall be publicly disclosed on a regular basis. District governments or park management agencies, in conjunction with relevant departments, shall designate entities that violate statutory or contractual obligations as key supervision targets during project approval, authorization, filing, and financing/mortgage processes.
Article 24 (Law Enforcement and Supervision)
Strengthen control over the designated use of industrial land. Industrial land must be used in accordance with the approved designated use and planning and construction conditions, and the approved designated use may not be altered. Strengthen planning and land law enforcement and supervision; for cases where the designated use of industrial land is altered without authorization, the entity shall be ordered to rectify the situation within a specified time limit and restore the industrial designated use. In cases of serious violations where rectification is not completed within the prescribed time limit, the grantor may terminate the land grant contract in accordance with the agreement and reclaim the right to use the construction land without compensation.
