Eminent Domain – Chinese Style

by Crocker on December 28, 2009, 5:04 pm

in Economics,Foreign Policy,Law,Politics

Think the Kelo decision trashed U.S. eminent domain law? Welcome to eminent domain – China style. Stealing is more like it.

As reported in Sunday’s Washington Times, China’s “urban housing demolition law” is under increasing pressure after a couple of bitter recent protests ended with evictees setting themselves on fire.

The law has been used to displaced tens – if not hundreds – of thousands of property owners to make way for economic development projects, particularly in the urban south coastal regions where whole towns have been displaced for new factories.

What’s particularly galling, however, is that average Chinese well understand that they’re losing their homes in many cases to corruption:

Mr. Wang, who specializes in land acquisition, also suggested that many of the demolitions are being pushed ahead because of commercial interests or corruption rather than to make way for public developments.

“There is a triangular relationship between the interests of the local government, businessmen and the mafia,” he said.

According to an article published in the state-owned China Daily, the local party chief of the area where Mr. Xi and his family until recently resided was also head of the land developer wanting to build on the space.

Mr. Xi was already suffering from a broken leg and arm at the time of this last protest after unknown assailants had beaten him three weeks earlier. Beatings and intimidation are common tactics used by developers when facing land disputes.

Beatings and intimidation, eh? It also looks like the developers are the ones doing the negotiating, not the local government:

Local governments often take a back seat in regards to negotiations on compensation and leave it up to land developers to fix a price and get the landholders to agree.

Lax laws, corrupt officialdom and sweetheart dealing. It all has a familiar ring. Sort of like Chicago.

Here’s a link to a video about demolition in Beijing. Small wonder people are setting themselves on fire.

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