Sub-district offices, committees, offices and bureaus of the District Government, and institutions subordinate to the district,

The Administrative Measures for Land Use in the Development of High-grade, Precision and Advanced Industries in the Dongcheng Park of Zhongguancun Science Park, which were adopted upon deliberation at the 53rd executive meeting of the District Government on November 5, 2018, are hereby issued to you for your earnest implementation.

Dongcheng District People's Government of Beijing Municipality

December 3, 2018

(This document is publicly issued)


Administrative Measures for Land Use in the Development of High-grade, Precision and Advanced Industries in the Dongcheng Park of Zhongguancun Science Park

This Measures are hereby formulated in accordance with the Opinions of the People's Government of Beijing Municipality on Land Use Policies for Accelerating Scientific and Technological Innovation and Constructing a High-grade, Precision and Advanced Economic Structure (Trial) (Jing Zheng Fa [2017] No.39) to maximize the benefits of precious and scarce land resources in the core area and accelerate the construction of a high-grade, precision and advanced economic structure in the Dongcheng Park of Zhongguancun Science Park (hereinafter referred to as the "Park").

I. Guiding thought. In accordance with the principles of the 19th National Congress of the Communist Party of China, and the decisions deployed by the Municipal Party Committee and the Municipal Government, the Park will be promoted to develop with high quality by deepening the supply-side structural reform, effectively utilizing land resources in the core area, and constructing a high-grade, precision and advanced economic structure.

II. Basic principles. In accordance with the principles of "usage determined by plans, supply conditions determined by industrial directions, supply prices determined by the market, and land users treated equally", enterprises engaged in high-grade, precision and advanced industries are organized to settle down preferentially and supplied with industrial land in the Park in accordance with the law.

III. Scope of application. This Measures shall apply to the Dongcheng Park of Zhongguancun Science Park of Zhongguancun National Demonstration Zone.

IV. Requirements for industrial development directions. In accordance with the requirements of Beijing Municipality, the Dongcheng District and the Park for constructing a high-grade, precision and advanced economic structure, enterprises applying for land resources shall be engaged in IT services, cultural industries, sports and health, financial services, commercial services, and scientific and technological services.

V. Preconditions for land supply

(I) Incomes of the applicants can be included in the Park.

(II) The applicants must meet the quantitative indicators for industry access of the Park, e.g. operating income per unit area, operating income per capita, full-caliber tax per unit area, district-level tax per unit area, fully-covered tax per capita, district-level tax per capita, profit-to-income ratio, and energy consumption per RMB 10,000 of GDP.

VI. Land supply and land use methods

(I) Obtaining industrial land in the Park by lease. After the Park developer is authorized by the Municipal and District Governments, enterprises intending to enter the Park may lease the industrial land from the developer in accordance with the law, but shall not transfer. The maximum term of the leased land shall not exceed 15 years. The annual rent system shall apply to the rent of industrial land. The annual rent is proposed by the Administrative Committee of the Park based on the cost benefits of the land and industrial guidance policies, and reported to the Dongcheng District Government for approval.

(II) Obtaining the land use right of the Park by transfer. Flexible-term transfer shall be adopted, with a maximum of 20 years. However, for major national, municipal and district industrial projects, the term can be extended as appropriate upon approval. The maximum term shall not exceed the maximum statutory limit of land use rights for transfer purpose.

(III) Developers of the Park may self-construct and hold the industrial housing and lease the housing and its supporting buildings to the applicants, provided that it shall neither be used for sale in whole or in part nor transfer its equity.

(IV) Enterprises in the Park may use the land in accordance with the law by sharing the construction land use right with the Park developer. To reduce the land use costs of end users, as enterprises obtain land use rights in accordance with the law through bidding, auction or listing, the Dongcheng District Government may bear corresponding expenses at a certain proportion of the land use rights of the land parcel occupied by the developer and share the rights with the enterprises, to partake in the expenses incurred.

VII. Ownership of buildings on the Park’s land

According to the Park's planning, enterprises intending to settle in may build production and operation facilities in accordance with the law during the land lease or the land use right transfer, during which these facilities belong to the investors.

VIII. Renewal procedures upon expiration

Upon expiration of the land use, if enterprises entering the Park require to continue the term, a renewal at latest one year prior to the expiration shall be proposed. If the Park's development plan and the requirements for industrial land use were met, procedures for land supply and lease shall be conducted again in accordance with the law. For enterprises failing to apply for the renewal in light of public interests, the Administrative Committee of the Park and other relevant departments will complete the exit procedures in accordance with the law as per the authorization by the District Government and recover the leased construction land or the land use rights.

IX. Compensation for the withdrawal of land use

(I) If the Dongcheng District Government recovered the leased land in advance, for buildings continuing to be used, compensation shall be determined at the replacement price in combination with the assessment of degree of depreciation.

(II) If enterprises entering the Park withdrawed from the construction land use right in advance, relevant authorities shall return the land transfer payment made by the enterprises for the remaining term as agreed; for buildings continuing to be used, compensation shall be determined at the replacement price in combination with the assessment of degree of depreciation.

(III) If the Dongcheng District Government recovered the land use rights transferred, it shall carry out an assessment in accordance with the law, and determine the compensation reasonably according to the fees paid by enterprises entering the Park to obtain the land use rights; for buildings continuing to be used, compensation shall be determined at the replacement price in combination with the assessment of degree of depreciation.

X. Land use requirements

(I) Before signing the land supply contract, the applicant must sign a performance supervision agreement with the Administrative Committee of the Park as an appendix to the contract. The agreement includes a withdraw clause, clarifying the regulatory measures imposed on the applicant who fails to meet the access conditions after its operation, and the way of withdrawal if the applicant were unable to develop, construct or operate for its own reasons.

(I) Before signing the land supply contract, the applicant must sign a performance supervision agreement with the Administrative Committee of the Park as an appendix to the contract. The agreement includes a withdraw clause, clarifying the regulatory measures imposed on the applicant who fails to meet the access conditions after its operation, and the way of withdrawal if the applicant were unable to develop, construct or operate for its own reasons.

(III) Professional parks, public service platforms, and incubator operators that are examined and approved by the Municipal Government can lease the land with the construction land use rights in accordance with the law or the industrial housing built to enterprises entering the Park. Other enterprises entering the Park are prohibited from transferring, selling, or leasing the land transferred or leased and housing thereon; any enterprise that alters the land purposes without approval or develops real estate in disguise shall be reported by the Administrative Committee of the Park to relevant authorities for disposal in accordance with laws and regulations and the performance supervision agreement.

XI. Supervision and administration requirements

(I) The Administrative Committee of the Park regularly monitors and evaluates the access and operation of industrial projects, and discloses the implementation situation for social supervision.

(II) The Administrative Committee of the Park establishes a ledger for enterprises' credit in land use, and a blacklist for discreditable enterprises that violate the land use contract and the performance supervision agreement, restricting their access to the land supplied by the government.

XII. Safeguards

(I) A joint working group composed of the Administrative Committee of the Park, the Dongcheng District Planning and Natural Resources Branch, the Dongcheng District Development and Reform Commission, and the Dongcheng District Industries and Investment Promotion Bureau shall be established, to negotiate on a regular basis and jointly promote the land use of the Park.

(II) A work flow chart of the management of whole-life-cycle land use for high-grade, precision, and advanced industries in the Park shall be prepared.

(III) The land use situation in the Park shall be clearly mapped out and a ledger of land resources used for industrial development shall be established.

(IV) An industrial access list of the Park shall be studied and formulated, clarifying the requirements for access conditions, industry type, investment intensity, output efficiency (including output per unit area), innovation ability, energy conservation, and environmental protection of enterprises entering the Park.

(V) A space planning and an industrial development scheme for the Park shall be formulated according to the new regulatory requirements.

(VI) The Dongcheng District Planning and Natural Resources Branch is responsible for proposing an annual plan for the use of the industrial land, which is included in the municipal annual land supply plan.

(VII) The annual rent standard for leased industrial land is studied and proposed by the Administrative Committee of the Park, reporting to the Dongcheng District Government for approval.

(VIII) The Administrative Committee of the Park releases land information for high-grade, precision, and advanced industries to the society in a timely manner according to the land arrangement.

(IX) In combining with the reform of state-owned enterprises of the district, companies operating in the Park shall be clarified, and operators under the document Opinions of the People's Government of Beijing Municipality on Land Use Policies for Accelerating Scientific and Technological Innovation and Constructing a High-grade, Precision and Advanced Economic Structure (Trial) (Jing Zheng Fa [2017] No.39) shall be determined.