CHINA Law and Practice Contributed by: Yan Gao, Yilin Wang and Zhuohui Li, Zhong Lun Law Firm
4.4 Eminent Domain, Condemnation and Expropriation Rights to Construct and Operate Transmission Lines and Associated Facilities Land Acquisition for Transmission Projects The construction of transmission lines and associat- ed facilities requires the acquisition of various forms of land rights depending on the nature of the infra- structure involved. The principal mechanisms avail- able under Chinese law are formal construction land approval, administrative allocation, and, in a number of provinces, a compensation-based arrangement that dispenses with formal land acquisition proceed- ings. For permanent facilities such as substations and converter stations, the relevant land-use rights are typically acquired through formal construction land approval procedures under the Land Administration Law, which may involve agricultural land conversion approval where the project site includes agricultural land. Where the project qualifies under the national catalogue of land uses eligible for administrative allo- cation, land-use rights may alternatively be obtained through allocation without payment of a land premium. For overhead line corridors, tower foundations and underground cable corridors, the position at the national legislative level is not fully settled. The Land Administration Law requires construction projects to obtain the requisite land-use approvals but does not specifically address whether transmission line tower foundations must be processed as formal construc- tion land subject to full land acquisition or agricul- tural land conversion procedures. No national law or administrative regulation expressly establishes a unified framework either requiring or permitting tower foundations and cable corridors to be handled through compensation in lieu of formal acquisition. In practice, a significant number of provinces have addressed this gap through local legislation, expressly providing that overhead transmission line corridors and underground cable corridors do not require formal land acquisition, and that the construction enterprise must instead pay one-time economic compensation to affected land rights-holders. Provinces with such legislation include:
• Jiangsu (Electricity Regulations, Jiangsu People’s Congress, effective 1 May 2020); • Henan (Power Supply and Use Regulations, Henan People’s Congress, effective 5 December 2025); • Hunan (Regulations on the Protection of Power Facilities and Maintenance of Power Supply and Use Order, Hunan People’s Congress, effective 27 May 2017); • Hebei (Electricity Regulations, Hebei People’s Con- gress, effective 29 July 2025); and • Gansu (Grid Construction and Protection Regula- tions, Gansu People’s Congress, effective 1 May 2023). In provinces where no such local legislation exists, the compensation-in-lieu approach may still be pursued in practice, but it is generally advisable to seek writ- ten confirmation from the relevant natural resources authority before proceeding. For temporary land use required during the construc- tion phase, approval from the relevant natural resourc- es authority is required under the Land Administration Law, and the construction enterprise must enter into a temporary land-use agreement and pay temporary land-use compensation. The period of temporary land use generally may not exceed two years. Compensation Standards Compensation for compulsory acquisition of agricul- tural land is determined by reference to the zonal com- posite land price established by the relevant provincial government under the Land Administration Law, tak- ing into account the original use, resource conditions, output value and location of the land, and subject to adjustment at least once every three years. Com- pensation for above-ground attachments and crops belongs to their respective owners under the Regula- tions for the Implementation of the Land Administra- tion Law (State Council, effective 1 September 2021). Where transmission line construction requires felling of trees within a woodland corridor, the construction enterprise must obtain the relevant forestry approv- als and pay one-time compensation to the affected rights-holders.
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