Tenure security is a significant issue in China because of its population of 1 billion farmers. The goal of tenure reform in China is to encourage private investment because of the belief that individuals have more access to funding and expertise in sustainable forestry management. Favorable policies to encourage individual investment include granting individual user rights, transferability of user right certificates and the abolishment of the harvest tax. These reforms are credited with increasing China¡®s

forest area and quality, raising farmer income, improving forest management practices and allowing for a more efficient allocation of capital, technology and labor.

Today, 58% of China¡¯s forest is owned by collectives, while the remaining 42% is owned by the state. User right certificates are only granted to collectives, their individual farm members and state owned companies. Although user rights can not be sold to non-collective members, collectives and their farmers can subcontract and lease out land use rights to PRC non-collective member

Evolution of Land Tenure Rights

1950 - 1952 Confiscation & Redistribution of land to farmers
1953 - 1956 Collectivization into small cooperatives
1957 - 1980 Communization of small cooperatives into large communes
1981 - 1987 De-collectivization, allowing farmers to keep production in excess of quotas
1988 - Present Introduction the market mechanisms of leasing rights and transferability of leases