Informal Rules, Transactions Costs, and the Failure of the "Takings" Law in China

Authors

Chenglin Liu

Abstract

Since the 1990s, China has witnessed large-scale demolition projects aimed at making room for commercial development. Commercial developers have been reluctant to provide residents with compensation and relocation arrangements, resulting in tension between residents and developers. To strike a balance between economic development and private property protection, lawmakers passed several laws to regulate government takings. In March 2004, a clause was added to Article 13 of the Constitution, requiring the government to compensate private owners when their property is taken for public use. The author concludes that widespread misuse of public purpose takings and forced evictions indicate that these new rules have failed to protect private owners.

Recommended Citation

Chenglin Liu, Informal Rules, Transactions Costs, and the Failure of the "Takings" Law in China, 29 Hastings Int'l & Comp. L. Rev. 1 (2005).
Available at: https://repository.uclawsf.edu/hastings_international_comparative_law_review/vol29/iss1/1