Published by ChinaMNC · Pinghe

Zhangzhou's 'Mu Jun Lun Ying' Reform Recognized as National Service Model: What Foreign Founders Should Know About Land-Use Efficiency in China

China's Ministry of Industry and Information Technology has highlighted Zhangzhou's land-efficiency reform as a national service model. Here is what foreign founders operating in China should understand about the 'mu-based' evaluation system for industrial land.

Zhangzhou Land-Efficiency Reform Named a National Service Model

China's Ministry of Industry and Information Technology (MIIT) recently published its list of 2026 typical cases under the "Serving Enterprises at the Grassroots" program. Among the entries selected as an outstanding case was a submission from the Zhangzhou Municipal Industry and Information Technology Bureau, titled Deepening the "Mu Jun Lun Ying" Reform: Promoting "Stock Renewal" and "Incremental Selection" of Industrial Land.

For foreign founders registering or operating a company in China, the recognition offers a useful window into how local governments are increasingly measuring industrial land use — and what that could mean for site selection, expansion and incentive negotiations.

What Is the "Mu Jun Lun Ying" Reform?

The phrase "Mu Jun Lun Ying" translates roughly to "evaluating heroes by per-mu output" (a mu is a Chinese unit of land area). The concept is a performance-based approach to industrial land management. Zhangzhou was the first city in Fujian Province to launch this reform, with the stated aim of promoting intensive and economical land use and improving the quality and efficiency of industrial development.

Under the system, core indicators such as tax revenue per mu and output value per mu are used as the basis for evaluation. Policy incentives and disincentives — described in the source as "rewarding the good and penalizing the poor" — are then applied to channel resources toward higher-performing enterprises and to push lower-efficiency enterprises toward upgrading and transformation.

Key Milestones Cited in the Source

• 2023: Zhangzhou was designated by the national government as a pilot city for the redevelopment of inefficiently used land.
• 2024: The city was recognized as a national outstanding practice case for the "Mu Jun Lun Ying" reform.
• 2024: Its fully online "Mu Jun Lun Ying" evaluation system was recognized as a provincial outstanding case for public data application.
• The Office of the Inter-Ministerial Joint Conference on Reducing Enterprise Burdens under the State Council excerpted and published Zhangzhou's experience in its Bulletin on Reducing Enterprise Burdens.

Results Reported Since 2025

According to the source, since 2025 the Zhangzhou Municipal Industry and Information Technology Bureau has further deepened the reform. The city reports that 161 instances of low-efficiency enterprises (counted on a per-enterprise, per-occurrence basis) have completed upgrading and transformation measures, achieving quality and efficiency improvements. These efforts involve a total land area of 9,943.5 mu.

The source states that the per-mu efficiency concept has been promoted among industrial enterprises across the city and that economical and intensive land use has produced good results.

Why This Matters for Foreign Founders

For foreign investors and founders setting up or expanding manufacturing, warehousing or other industrial operations in China, land-use efficiency policies are increasingly part of the operating environment. Here are practical points to keep in mind:

1. Land Allocation May Be Tied to Performance Expectations

Where local governments apply per-mu evaluation systems, the amount of land offered, the terms of the land grant, and access to incentives may be linked to expected output or tax contribution per unit of land. Founders should clarify these expectations during site selection and lease or land-grant negotiations.

2. Existing Sites May Face Upgrading Pressure

The reform explicitly aims to push low-efficiency enterprises to upgrade. Foreign-invested companies operating older or underutilized facilities should be aware that local authorities may encourage — or require — renovation, redevelopment or more intensive use of the land.

3. Online Evaluation Systems Are Expanding

Zhangzhou's evaluation system is described as fully online, and it received provincial recognition as a public data application case. This suggests that data-driven assessment of enterprises' land-use performance is becoming more systematic, which can affect how companies are classified and treated by local agencies.

4. Incentives May Flow to Higher Performers

Because the policy framework rewards higher-performing enterprises, companies that can demonstrate strong per-mu output or tax contribution may find themselves better positioned when discussing local support measures. This is a general observation based on the policy design described in the source, not a guarantee of any specific benefit.

Questions Foreign Founders May Want to Ask Local Authorities

• Does this city or district apply a per-mu evaluation system to industrial land, and which indicators are used?
• How are enterprises classified under the system, and what consequences follow from each classification?
• What reporting or data obligations come with participation in an online evaluation platform?
• Are there upgrading or redevelopment requirements attached to the land or facility being considered?

Context: A National Policy Direction

The MIIT's "Serving Enterprises at the Grassroots" case program highlights local practices that support enterprises. Zhangzhou's inclusion signals that land-efficiency reform is being treated as a model worth promoting. For foreign founders, the takeaway is that local industrial land policy in China is increasingly performance-oriented, and understanding these frameworks early can help avoid surprises later.

Next Steps

Foreign founders evaluating a manufacturing or industrial presence in China should factor land-use efficiency policies into their site-selection and compliance planning. Reviewing local evaluation rules and clarifying expectations with local authorities before committing to a site can help align business plans with the prevailing policy environment.

Foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535 for help registering and operating a company in China.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.