Thursday, May 14, 2009

The Debts of the Lenders: Chinese Cut Industrial Land Prices by 30%

The words "China" and "Environmentalist" are normally considered oxymorons. The two words are rarely seen in the same sentence. Two decades of intense industrialization has turned much of the country into a polluted wasteland w/acid rain, lower water tables, and disease outbreaks routine among both livestock and the populace.

However, a powerful Chinese ministry seems intent on removing these negative images and improving the economy at the same time. Can it be done?

Read the announcement for yourself. As for now, I remain skeptical. But a longer term investment down the road in the sectors mentioned below might be a wise choice.

BEIJING, May 14, 2009 (Xinhua via COMTEX) --

China's Ministry of Land and Resources has announced a 30-percent cut in the minimum purchase price of land for industrial use in order to boost investment.

However, the statement on the ministry website Wednesday failed to say when the cut would take effect. The move would "further implement the government's policy of boosting domestic demand and push forward steady and rapid economic development," said the statement.

The new rule will apply to investments that make intense use of land and those involving the processing of agricultural, forestry, animal husbandry and aquatic products.

The ministry set minimum prices for industrial land use in January 2007 to curb the selling of cheap land-use rights for industrial use to attract investment and seek a higher GDP growth.
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