(4) Property of the Collective. In accordance with the Constitution and the Party's basic rural policies at the present stage, the draft property law explicitly stipulates, "Rural collective economic organizations apply the dual operation system characterized by the combination of centralized operation with decentralized operation on the basis of operation by households under a contract." And at the same time, the "right to land contractual management" and the "house-site-use right" are stipulated separately in special chapters.
In order to grant the farmers a long-term and guaranteed land- use right, the draft property law stipulates that, at the expiration of the term of a contract for a piece of farmland, grassland or forest land, the contractor of the right to land contractual management may have the contract renewed in accordance with the relevant provisions of the State.
On the question whether the restrictions on the transfer and mortgage of the right to land contractual management and the house- site-use right can be lifted. In view of the fact that at present, the social security system in the rural areas of our country has not yet been established in an all-round way and that the right to land contractual management and the house-site-use right provide the farmers' lifelong foundation, the conditions for lifting such restrictions are not yet ripe, when considering from the perspective of the country as a whole. In order to maintain the laws currently in force and the policies of the State on rural land at the present stage, as well as to leave some room for revising relevant laws or adjusting relevant policies in the future, the draft property law stipulates, "Persons enjoying the right to land contractual management shall be entitled to circulate such right by adopting such means as subcontract, exchange and assignment in accordance with the provision is of the Law on Land Contract in Rural Areas." "Such laws as the Land Administration Law and the relevant regulations of the State shall be applicable to the obtainment, exercise or assignment of the house-site-use right."
On property of the collective in cities and towns. The enterprises of the collective in cities and towns in our country have gradually been established since the 1950s. Through their evolution over the last few decades, some of them were established by State-owned enterprises for the purpose of offering jobs to the children of their workers and for the youths who had received a school education and had returned to cities and towns from the countryside; and others were established by State-owned enterprises for the purpose of separating subsidiary industries from them and replacing their surplus labor force in the course of reform of the enterprise system. Through reform of the enterprise system over the last few years, great changes have taken place in the enterprises of the collective in cities and towns. At present, reform of the enterprises of the collective in cities and towns continues to deepen in accordance with the principles laid down since the 16th National Conference of the CPC. The draft property law has made stipulations in principle on the property of the collective in cities and towns in term of the right to things, as follows, "The immovables or movables owned by the collective in cities and towns shall, in accordance with the provisions of laws and administrative regulations, be possessed and used by, shall benefit, and shall be disposed by, the said collective." And it stipulates, "The property owned by the collective shall be protected by law, and illegal possession, looting, illegal sharing, or destruction by any unit or individual is prohibited." These stipulations are not only in conformity with the present conditions, but also leave some room for deepening the reform in the future.