According to the Provisional Regulations on Assignment and Transfer of Urban Land Use Rights in People's Republic of China (PRC), land use is divided into commercial land, residential land, industrial land and scientific, educational, cultural and health land.

Land use rights transfer contracts or land allocation decisions restrict land use. The Regulations on the Implementation of the Land Management Law also stipulates that land users shall not change their land use at will. If it is really necessary to change the use, it shall obtain the consent of the original transferor, adjust the transfer fee of the land use right, and re-sign the land use right transfer contract. "Urban Real Estate Management Law" also stipulates this article, and at the same time, in the urban planning area, it is necessary to obtain the consent of the urban planning management department. Otherwise, it is illegal land use.

Furthermore, the land for science, education, culture, health and sports belongs to public welfare undertakings, and is generally supplied by administrative allocation, while the commercial and residential land belongs to the nature of commercial housing and should be supplied by allocation.