China's Ministry of Land and Resources issued the "Urgent Circular on Strictly Prohibiting Industrial and Commercial Enterprises from Altering Land Use Purpose without Permission for Constructing Non-agricultural Facilities on Leased Agricultural Land" on November 29, 2011.
The illegal renting from rural agricultural land for commercial purposes may be increasing in recent years in China - particularly the renting of land to factories and corporations - posing a life threatening threat to China's food security.
The Circular is involved with the transfer of land contractual management rights and aims to ensure the land use purpose is just not altered inside the transfer process. Where an enterprise desires to utilize agricultural land for non-agricultural purposes, such use must comply using the general plan of land use in that locality, as well as the enterprise must undertake the approval procedures for converting the application of agricultural land.
The Circular requires all localities to boost supervision of land use and incorporate such supervision inside their routine scope of inspection, especially concentrating on the leasing of agricultural land by industrial and commercial enterprises.
Where illegal usage of land is discovered, any constructions which are not in compliance with the law will likely be demolished, as well as any land that needs to be put into agricultural use ought to be done so. The entities and individuals responsible for such illegal using land will probably be be subject to severe penalties.
In other news, The People's Bank of China (PBC) will lower the reserve requirement ratio (RRR) at China's banking institutions by 0.5 % starting on December 5, a move that marks the very first RRR cut in several years.
The 0.5 % drop will bring the RRR at large-scale banking institutions for the level of 21 percent, and lower the RRR at smaller than average medium-scale banking institutions on the level of 17.5 percent. A total that could reach over RMB396 billion in liquid capital will therefore be unlocked.
Under high inflationary pressure, China lifted the RRR 12 times this past year, bringing the lender reserve requirement to an exceptionally advanced level of 21.five percent and cash supply growth to a noticeably low level.
The tightened liquidity has largely restrained loan from the bank offers, therefore putting many of China's small and medium-sized enterprises (SMEs) into financial troubles.
nematicide definition facing SMEs are a lot more severe compared to the ones in 2008, once the Global Financial Crisis broke out, says in the report recently submitted by All-China Federation of Industry and Commerce towards the State Council.