The impact of political forces on urban land ownership reform in transitional China

Purpose – The purpose of this paper is to critically review the process of urban land ownership reform in China. It seeks to illustrate how the detachment of the concept of land ownership from its significance in a planned socialist state has contributed to the development of a real estate sector, and how the concept of land ownership should now be regarded in the new era of marketization. In particular, it focuses on the widespread influences of political forces in these processes. Design/methodology/approach – The paper analyses relevant legislation enacted within the People's Republic of China. This analysis is undertaken within the context of the social, political and economic changes that have occurred within the country during the period under consideration. Findings – Two findings emerge from the study. First, an economicbased notion of land ownership has evolved in China as a consequence of the economic and social changes accompanying the process of economic liberalisation. This reflects the elimination of political forces in defining land values in the new era. Second, however, the involvement of political power in the process of land asset distribution is shown to have led to market distortion. This may, in turn, lead to market failure and social conflict. For the development of a healthy real estate market, the influences of these political forces should, therefore, be restricted through a process of ongoing reforms. Originality/value – The paper presents a detailed analysis of the impact of political forces on the changed patterns of land allocation in transitional China. The country's unique social background and system of land tenure have not previously been subjected to detailed scholarly attention. The research published in this paper suggests further possibilities for China's continuing system of land ownership reform and also contributes to a redefinition of the concept of land ownership in the new era of marketization and globalization.