Study On The Circulation Of The Rural Land Use Right

China has made great achievements in its social and economic undertakings after thirty years of reform and opening up. With the rapid development of the commodity market, people have realized the importance of land value. While land circulation is a vital way to realize land value and achieve its rational distribution, the nation-collective dual land ownership structure remains in place. The land market is being divided into two unconnected parts, the rural collectively-owned land distinguishes greatly from the state-owned land with respect to land use rights. The rural land has been expropriated at a low price and its value-added has been shifted to urban areas. It is unfair to ask peasants to sacrifice their benefits with land use in the name of public interests. It does not conform to the scientific outlook of development which requires both rural and urban areas to flourish in a coordinated way. Therefore It is inevitable to reform the collectively-owned land system..The collective land use right must be put on the market in order for the dual ownership structure to be broken. On the premise of public ownership to land property and without changing the collective ownership to rural land, we can build a unified land market for the circulation of rural land use rights so that the same land, with the same right can be on the market at the same price and peasants can enjoy the benefits of urbanization and economic development.In the 1990s, in the eastern developed coastal areas some peasants began to trade their land use right for economic benefits in an invisible land market, which was transformed into an experimental one under the direction of the local governments. However a variety of issues need to be addressed which include a rural property rights system not so clear, peasants'interests harmed, benefits not fairly allocated, supervision not in place and intermediary agencies less than needed.The article begins with the research on the background information of collectively-owned land use right transaction and its significance. After defining what is so-called land circulation the author presents the relevant rules and practices of some local governments based on his findings in the rules and laws concerning the circulation of collective-owned land use right. The author lists some potential problems with a large-scale circulation and brings up some proposals given the reasons thereof on three levels of its system, institutions and mechanism. The study is aimed to find the basis for implementing a collective land use right circulation system and put forward the suggestions to improve the laws and land-related systems. The article also summarizes the experiences of those experimental areas, the negative and positive aspects of the land circulation, which lead to some specified recommendations for formulating a land circulation system.