May 15 – The Ministry of Land and Resources is discounting the minimum purchase price of land for use in agriculture, forestry, animal husbandry and aquatic products by 30 percent to encourage more investment.

The announcement made last Wednesday did not specify when the cut will begin. According to a ministry statement, the move would “further implement the government’s policy of boosting domestic demand and push forward steady and rapid economic development.”

The minimum prices for industrial land use ranges from RMB60 per square meter for areas located in Xinjiang Uygur autonomous region to RMB840 per square meter for land located in the Shanghai suburbs.

Industrial investment in China has been affected by the financial crisis and led to lowered demand for industrial land. The 30 percent discount should help companies reduce costs and look for ways to expand investment.

The ministry reports that the average industrial land price was RMB721 per square meter in the first quarter, a 1.1 percent decrease during the same period last year.