On the Distributive Justice of Land Added Value in the Process of Urban Expansion

It is an unarguable fact that the urban-rural dual structure led to two different results. On the one hand, it had been playing a great role in the city development and prosperity, and on the other hand, it had led the slow development of rural economy and the income gap between rural and urban areas. The government makes efforts to promote the process of urbanization to maintain the sustained development of China’s economy and economic transformation which are the two needs of the Chinese reality. But in the top-level design of the policy, the government did not give a fair profits distribution to all social groups. On the contrary, the result of urban development is based on the expense of a part of the people’s interests in exchange for the interests of another parts of the people, and especially on the government expropriation in the process of urban expansion. Under Land Administration Law of the People's Republic of China, the government monopolized the expropriation right of the rural land, and the rural collectives and farmers as the land owner and constructors respectively have no rights to decide the land use purposes. In fact, they are forced to accept the land compensation, and because of the little bargaining rights, they gain little from the land value increment. Comparatively, the governments became the biggest beneficiary who made use of the land as a source and capital to earn the achievement in their official career and more money required by the urban development. The paper mainly analyzes the current situation of the distribution of the land added value, elaborates the reasons why the government strives for the land interests, and discusses what farmers lose in the government expropriation. Last but not lest, the author reflects on the land reform and gives a proposal on distribution of land added value.