China tightens control over land supply to curb the real estate sector

China’s government issued new rules aimed at tightening land supply in another bid to prevent overheating of the economy, People’s Daily reported. The new rules warn local leaders that they will be penalized if they fail to stop or investigate illegal land sale cases in the areas under their jurisdiction, the paper quoted the State Council notice. Under the new rules, the use of farm land for construction purposes will no longer be approved by the State Council for each project, but should be reported to provincial governments and submitted to the State Council for approval on an annual basis. Land management authorities must keep a closer watch on local governments and stop land supply applications from local governments that may breach regulations, according to the notice.