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Q: Does Chinese government compensate for closing down your business or forcing relocation?
I was having an argument with a bar owner this weekend. He was relatively new in China and in the way things are run. I was trying to explain to him that if at any moment in time the Chinese government was interested in his piece of land in view of building high-rises, they'd just kick his ass out either way. That he didn't have any rights and would always lose, adding that he might very well not be compensated (i've heard of Chinese often not getting compensated in such cases).
So my question is: imagine you have a business in China, a small business, and the Chinese government wants the land. Could they kick you out without compensating you a dime for it?
11 years 48 weeks ago in Business & Jobs - China
Yes they can. And even if they do compensate, it will probably not be the amount you feel you deserve.
Yes, your business could be expropriated at anytime by the Central Government, Provincial of Municipal Government and their projects. But while many abuses happened in the past, local Courts (at least for local persons) have been sympathetic lately. The problem is who's appraised values are the correct ones ?. While you may place a value on business good will and business interruption, compensation is solely on value of physical property (real estate), and nothing else.
Ok, I'm going to have to educate you guy's a little on this one. If you were forced to move or shut down the government would pay for the space and the value it would it would be considered not of it's worth now but as it's worth for it's future. It also depends on size and height. As for hearing about locals who receive no compensation, it's not correct, if you notice a lot of villagers who no their land is about to be used for development, they build an extra story on top of their shack with will be worth double the value even if it has only been there temp. and has never been used.
The government does not comp. you, the developer of the land being took will be the one to make the offer
