What is Chinese land tenure system?

China has dual land tenure system(土地权属制度). Land ownership(土地所有权)is separate from land use rights(土地使用权). Land ownership is divided into two categories: state-owned land and collectively owned land. In other words, the land is either owned by the state or the collective economic organization ("CEO")(集体经济组织). Natural persons, legal persons or other organizations may only acquire land use rights and as a result it is impossible for any of them to acquire the ownership of land in China.

What is the CEO? Strictly, the CEO, which is the result of planned economy, is not a legal term. In China, around 80%of population is farmers. Most of Chinese farmers live in rural areas and naturally and historically form villages. Chinese government recognizes generally a single village (sometimes several villages) as a CEO. The CEO is the owner of land in the area of villages and distributes it to the members or villagers of village for cultivation or residence.

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