"One major factor in this will be to ensure all applications for land, especially those involving profit-driven real estate projects, are resolved through public bidding," he said.

Public bidding is an accepted practice around the world, used to ensure transparent and fair land-related deals, the minister further expounded.

Tian believes the move, essentially an overall replacement of the former government-based mechanisms, is necessary to fit in with the rules of the World Trade Organization.

The minister asked land administration offices at all levels to shift their focus to supervision of the implementation of related laws and regulations.

Under market-based mechanisms, land deals have to be decided publicly, though the specific methods used may differ.

A special committee will review applications for land for public uses, and approve them or ask for reasonable financial compensation in cases which violate government regulations.

"All lands allocated should be listed in publicly issued catalogues," said Tian.

But under the new mechanisms, the ministry will shoulder a new responsibility to oversee the land price rates published regularly by various Chinese local governments to ensure an overall dynamic balance.

Luckily, the country has already accomplished this to some measure, and is carrying on steadily with reforms paving the way for the eventual fulfillment of the goal.

After several years' efforts, the ministry has successfully introduced the idea of treating land as valuable national property that should be priced according to market demand.

A recent survey of the ministry indicated payments made for more than 40 percent of last year's allocations of reserved land were reasonable.

In addition, 1,087 municipalities have established land markets, and more than 90 percent of Chinese provincial regions have launched public land bidding mechanisms of varying scale.

(China Daily December 6, 2001)