Coronavirus: could China’s rural land reform plan unleash a new round of economic growth?
- Beijing is being urged to press on with land reform to offset the economic impact of the coronavirus
- China’s household registration system and land-use laws have faced criticism for worsening the nation’s urban-rural divide and dragging on growth
Chinese reformers are urging the government to push forward with a long-awaited rural land reform plan they argue will unleash growth, as the coronavirus pandemic and disputes with major trading partners reshape the economic environment.
Some observers believe land reform will provide the world’s second largest economy with a boost in the way that housing privatisation did in 1998 and China’s ascension into the World Trade Organisation did in 2001.
Though that is still a matter of debate, many economists think a broader sharing of land revenue would not only help rural residents hit hardest by the pandemic, but also increase their income and spending. It would also allow many to resettle in cities where they could find higher-paying jobs.
China has maintained tight control over land since public ownership began in the 1950s. Over the past three decades, local governments have used their powers to seize rural land deemed necessary for industrial projects and property development.
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Forced relocations, which are often only compensated by meagre payments, have sparked mass protests and helped widen the wealth gap between rural and urban citizens.