Land finance

Land finance is a key component of China's economy in various aspects of the country's urban development. Most scholars summarize it as a fiscal operation model in which local governments obtain land transfer fees by selling land use rights and rely on them as a primary source of fiscal revenue, or referring to Chinese local governments' high reliance on various types of land-related financing. Local governments gain substantial financial resources by controlling key stages such as the acquisition, reservation, and transfer of urban construction land. These funds are then invested in urban infrastructure development and the provision of public services, thereby promoting urbanization and economic growth.