China sees mass development and urbanization at a breathtaking speed. Sometimes local governments want land back from foreign companies for this development. Veteran lawyer Mark Schaub looks at options and strategies when this happens at China chit-chat.
Over the years I have worked on many projects where the authorities have sought to take back the land. This is not unsurprising as China’s rapid development and mass urbanization have led to residential blocks and commercial towers encroaching on industrial land. On a due diligence I was surprised that a cat food factory was built bang in the middle of a residential area. On quick reflection it was not that the cat food factory had moved – the residential area had surrounded. And so, as people often do behave “I am moving to live next to the cat factory because it is cheap and convenient”. Shortly after moving in it quickly becomes “Cat food factory smells – someone must make them leave”
Traditionally, relocations always totally stress out management – Can we get enough compensation? Will we become rich? Can we get a block of land nearby? Our business has an environmental impact – will anyone let us in? Will we be stuck next to that bloody cat food factory? Will the employees stay with the company after we move? How do we organize transport? How do we deal with business interruption?
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