In the public interest, the state may expropriate land when necessary. The state will compensate the expropriated land according to its original use. The compensation standard for land expropriation is determined according to the average annual output value of the land in the three years before expropriation, and the annual statistical report of the most basic unit approved by the local statistical department and the unit price approved by the price department shall prevail.

Legal objectivity:

Article 47 of the Land Administration Law of the People's Republic of China, if land is requisitioned, compensation shall be given according to the original use of the requisitioned land. Compensation for requisition of cultivated land includes land compensation fee, resettlement fee and compensation fee for attachments and young crops on the ground. The land compensation fee for expropriation of cultivated land is six to ten times the average annual output value of the cultivated land in the three years before expropriation. The resettlement subsidy for requisitioned cultivated land shall be calculated according to the number of agricultural population to be resettled. The number of agricultural population to be resettled shall be calculated according to the number of cultivated land requisitioned divided by the average number of cultivated land occupied by each requisitioning unit. The resettlement subsidy standard for each agricultural population in need of resettlement is four to six times the average annual output value of the cultivated land in the three years before expropriation. However, the resettlement subsidy for each hectare of expropriated cultivated land shall not exceed fifteen times the average annual output value of the three years before expropriation. The standards of land compensation and resettlement subsidies for the expropriation of other land shall be stipulated by provinces, autonomous regions and municipalities directly under the Central Government with reference to the standards of land compensation and resettlement subsidies for the expropriation of cultivated land.