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The Great Chinese Land Grab is on
By Xia Yunfan

HONG KONG - The Great Chinese Land Grab is hurtling on, flouting official diktats, benefiting the rich and robbing poor farmers of cropland in a vast nation that has relatively little arable land.

Over the past seven years, China has lost 66,670 square kilometers in arable land, according to the Ministry of Land Resources, an estimate that many experts consider grotesquely below the actual figure and not reflecting desertification, poor management and unbridled illegal land grabs. While China is a vast country, the amount of arable land for a population of 1.3 billion, more than 800 million of them farmers, is relatively small and intensely cultivated. The situation is getting worse; China is now planning to lease cropland from Vietnam to help feed the Chinese people.

In April Chinese Premier Wen Jiabao announced a series of measures to curb widespread illegal land requisition nationwide, both in an effort to rein in the red-hot real-estate sector and to protect the lawful rights, interests and livelihood of millions of farmers and others who depend on the rural economy. It is these rural poor, already missing out on China's new-found wealth, enjoyed by the relative few, who bear the brunt of this nationwide wave of land appropriation.

Industry experts consider Wen's reining-in measures to be justified and timely, even too late, in view of the over-supplied property market with a recorded vacancy rate of 14% at the end of 2003. However, not all the subordinate provincial and local governments dance to the premier's and the economists' tune.

In coastal Jiangsu province's Taizhou city, about 210 kilometers northwest of Shanghai, Wen's orders are blatantly flouted and ignored. Taizhou is the birthplace of reformist President Hu Jintao. Vast amounts of land are still being stolen from the people every day, found Asia Times Online, which investigated the land grab in Zhangguo and Dainan, towns under Taizhou's overall administration.

Despite its limited administrative capacity and functions and its medium, modest revenue, Zhangguo boasts a total of 28 villas, numerous high-end properties, entertainment facilities and luxury hotels.

'Totally out of control'
A former communist cadre, who gave his name as Chen and spoke on condition of anonymity, gave vent to his indignation: "Totally out of control! All of the land appropriation of 13,000 mu [865 hectares] over the past decade was illegal. The land was once fertile farmland and robbed from the local peasants." He disclosed that locals had been consistently petitioning the authorities to stop the practice and restore their land, or make some restitution - to no avail.

The situation in Dainan, also under Taizhou administration, is similar, if not worse. A small town with a population of 92,000, it nonetheless has set up eight industrial zones and a new economic development zone. According to an informed source, also speaking on condition of anonymity for fear of reprisal, the land for industrial use already tops 998 hectares, some of which has been expropriated expropriated from local farmers without due legal process. Authorization from the town's party chief is required to bypass all the required legal procedures and that authorization was acquired.

In Chinese officialdom, this is not surprising because many bureaucrats and local leaders bend or break the rules to line their pockets and then cleanse their public performance records. Many, as acknowledged by Beijing government and party leaders - and known by everyone - value big, window-dressing projects and want to increase the value of investment, whether a polluting chemical plant or a new factory on land that once was tilled to feed the populace.

As in Zhangguo, petitions from locals go nowhere.

The source revealed that last year the provincial department on land use imposed a massive fine of 40 million yuan (US$4.82 million) on these two towns for land misappropriation, but the two have been delaying payment.

The rush to grab land, whether by expropriation or forced "purchase" at unfair below-market prices, has reached virtual hysteria proportions in Zhangguo. Some enterprises, quite upbeat because of the likely appreciation in land prices, have bought more land than they need for actual plant construction, at about 15,000-30,000 yuan per hectare. Those who had earlier purchased at only 4,500 yuan can make a killing now.

Empty factories, overgrown with weeds
A brief tour of some economic development zones reveals that many factories are empty and overgrown with weeds. A young farmer surnamed Zhang - he declined to give his full name - in Zhangguo told Asia Times Online that the land would become non-arable after being abandoned for a few years.

In the previous decade, the cultivated land per capita in the two towns has already shrunk from 1,335 square meters to about 650, and officials denied compensation to those whose land was appropriated. Instead, numerous locals attest, officials forced other farmers to offer their farmland for sale at unfairly low prices, making very large parcels available. If the trend continues, no land will be available for tillage in these areas the foreseeable future.

For some - but clearly not all - in the town of Zhangguo, this seems the best of times. After 10-odd years of expansion, its acreage has increased 19 times to 17 square kilometers and the population has also risen fivefold to more than 30,000. It has nearly 30 villas, fancy hotels and entertainment facilities, with more construction under way.

Since China's red-hot economy has been growing at breakneck speed for nearly two decades - with dangerous consequences - the government and Communist Party have called for a slow down, curbing investment in key sectors, including real estate. But those mandates from Beijing against reckless land purchase and speculation have fallen largely on deaf ears, more attuned to the prospects of immediate profits.

For local farmers, it could be the worst of times. Plagued by almost constant and illegal land requisition, they have almost lost their most-treasured asset and for most their sole source of livelihood, their cropland. Inhabitants disclosed that more than 800 farming hectares were illegally expropriated over the past decade - for non-agricultural uses.

Farmers 'forced' to pay luxury school fees
As if to rub salt into the farmers' wounds, officials even try to force them to send their children to a luxury school requiring an annual tuition of 4,500 yuan ($542), according to town inhabitants and farmers who spoke on condition of anonymity. This despite the fact that most farmers earn only 1,500 yuan a year. Some do earn more, some less; some must borrow and go into debt.

Covering an area of 53 hectares, construction of this deluxe school has not yet been completed. Zhou, father of a primary school student, confirmed that teachers had been always lobbying students to enroll in the luxury school. This kind of luxurious education is hardly affordable for ordinary farmers who solely live by agriculture, he complained. Like others, he spoke on condition of anonymity.

Another resident, Zhao, whose child attends an ordinary middle school, told Asia Times Online that the official numbers for local annual income are just smoke and mirrors. "Our annual income per capita is exaggerated by officials to be over 6,000 yuan. It is not true at all," he said. "Officials have manipulated such a figure to whitewash their performance record. They include the income of our fellows doing business in developed regions and add it to ours. In this way, our annual income has been hyped to more than 6,000. The actual figure should be around 1,500. I know what these fat cats want. They want us farmers to pay more agricultural taxes," Zhao said.

China's government and the Chinese Communist Party, recognizing - at least officially - the plight of the Chinese peasant, have called for slashing agricultural taxes and fees and eliminating levels of bureaucracy in an effort to improve the livelihood of China's poorest people.

Taizhou patronized by Jiang Zemin
Both Zhangguo and Dainan towns are under the administration of Taizhou, previously included in Yangzhou city, the birthplace of former president Jiang Zemin, now the chairman of the party's powerful Central Military Commission. In 1996, Taizhou was separated from Yangzhou and upgraded to higher administrative status, making it eligible for more state funds, investments and a three-year exemption of revenue taxation.

Jiang is a big patron of Taizhou: From 1990-2000 he visited Taizhou several times. The city also benefited from many favorable policies from the central government and achieved its economic liftoff during Jiang's tenure as president. The nation's railway network was extended to Yangzhou on April 18 and then to Taizhou, which has long been pressing for a better transportation network for the goods from factories on lands seized from farmers.

Jiang also established his clique in Taizhou. Because of Jiang's influence as chairman since 1990 of the country's highest military body, two local officials, including Taizhou Mayor Xiaming, were elevated in 2003 to provincial positions despite what was widely considered to be their mediocre performance.

One wonders whether Jiang's patronage has enabled the two small towns to dare defy President Hu Jintao's and Premier Wen Jiabao's orders to cool down the economy, especially the real-estate sector, and to grab the farmers' land.

(Copyright 2004 Asia Times Online Ltd. All rights reserved. Please contact content@atimes.com for information on our sales and syndication policies.)


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