China hits brakes on rural land reform in major policy release
Urbanites are now explicitly banned from buying up rural homes, as the government prioritises social stability
China has officially banned urban residents from buying rural homes and barred retired officials from building houses on rural land, as the government pumps the brakes on its recent land reform drive.
Beijing outlined the restrictions in its latest “No 1 document” – an annual policy statement on rural affairs released soon after the Lunar New Year – which was unveiled by the official Xinhua News Agency on Sunday.
The move signals the government’s intention to proceed cautiously with its land reform agenda, with officials keen to ensure that migrant workers maintain a safety net amid a period of economic turbulence, analysts said.
For decades, the vast majority of rural homes have only been tradeable within the same village and have been ineligible for use as collateral for loans – a rule that many analysts believed hindered rural residents’ ability to raise capital and profit from China’s rapid urbanisation.
The government appears committed to continuing the reform process, with the No 1 document containing a pledge to “explore effective ways to revitalise legally-owned rural homes through leasing, equity participation, and cooperation”.
These measures primarily consider the adaptation period for rural migrants in cities, ensuring a safety net for those who may choose to return to rural areas