The major policy objectives of the Chinese government in establishing the land use rights (LURs) system can be summarized as to: (1) raise public funds to promote the construction of infrastructure and public facilities; (2) establish a land market to accommodate the economic reform; and (3) manage urban development. In this chapter, different schemes that are employed by the Chinese government to raise public funds, recover betterment and compensate the requisitioned land user are presented, their strength and weakness are analysed, and their impacts on the urban land market are illustrated. After this exposition, the chapter discusses the role of government in the land market, and the obstacles to addressing betterment and compensation, in order to respond to research questions put forward in Chapter 1.
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