Reporter: Liu Ruiwen, Doctor of Beijing Rural Economic Research Center

　　Since 2012, the Urban Agricultural Economic Center (Agricultural Research Center) started the trial related to land trust, and it explored in areas and villages like Mentougou, Huairou, and Pinggu, promoting demolition funds trust products of the series of “Enriching People”, and a certain achievement has been successful. On February 27, 2014, through the two-year hard work, the first Land Trust entitled “No. 2014008 Golden Field” in Beijing and even in North China officially launched. Beijing International Trust Corporation signed the agreement with ShuizhangVillage, MujiayuTown, trusting over 1,680 mu lands to Beijing International Trust Corporation. This agreement not only demonstrated that the first Land Trust Project has officially launched, but also showed that a whole new stage was facing the financial innovation in Beijing rural areas.

　　No.1 Dilemma: Difficulty in Land Management Restricted the Rural Development and Farmers’ Income

　　Shuizhang is located in Mujiayu Town, Miyun County in Beijing, with over 1,680 mu farmlands managed by the local Shengshui Cherry Professional Cooperative, planting fruits like strawberry, cherry, grape and blueberry, with high added values. The Cooperative was lack of funds in expansion and it was suffering a hard period in management because of its large amount of investment in Greenhouse, basic roads, seedling as well as the introduction of technology and labor force.

　　The difficulty in land management had a side effect on the collective economic development in the whole village and the increase of farmers’ incomes. There was no income support for the village dividends and it had to borrow money to offer the dividends. And besides the circulation fee of 1,000 yuan per mu, villagers could only get some entity dividends, so the majority of the farmers relied on the income earned from working in the urban or in the surrounding villages to support a family.

　　No.2 Breakthrough: Developing the Land Trust

　　Shuizhang has gathered the whole land of over 1,680 mu by means of organizing the Land Stock Cooperative and entrusted to Shengshui Cherry Specialized Cooperative by the Trust Cooperation. And in this way, besides the transfer fee of 1,000 yuan per mu, the trust corporation should pay almost 18 million yuan as the trust finance limits to Shengshui Cherry Specialized Cooperative for the expansion, improved management as well as promoting its overall profitability. When it profited, in accordance with the proportion agreed in the contract, it should defray the regular excess return to the trust corporation, and the distribution proportion should be 1:3:6 respectively to the Trust Corporation, the Land Stock Cooperative as well as the farmer shareholders. What’s more, Beijing Trust Corporation is going to cooperate with the subordinated supermarket of Beijing Hualian Group to guarantee the smooth sales channel of the agricultural products of Shengshui Cherry Specialized Cooperative.

　　The followings are the basic features of the land trust in Shuizhang:

　　Firstly, the four baselines were saved.

　　In the process of land transfer promotion in Shuizhang, the baselines were saved by means of adhering to the principles of keeping the collective ownership, the land utilization unchangeable, adhering to protect farmers’ basic land rights and follow the regulation of land transfer and management.

　　Secondly, the land resources were revitalized by means of land stock cooperation.

　　The farmers voluntarily organized the Land Stock Cooperative to centralize the land contracts and management rights and the Land Stock Cooperative would be the bailor, entrusting the lands to the specialized trust corporation.
Thirdly, the land market operation would be handled by professional trust corporation.

　　On the basis of market management operation, the resource allocation capability, and the advantages on controlling the risks, the trust corporation would carry out the market operation with the entrusted lands and take the related risks.

　　Fourthly, farmers' professional cooperatives would be mainly responsible for the production and management.

　　The farmers’ professional cooperative organized by the local farmers --- Shengshui Cherry Professional Cooperative was the transferee, responsible for the detailed management.

　　Fifthly, the Agricultural Financing Assurance Corporation would mainly guarantee.

　　The 18 million yuan land trust capital was in the form of marketization, and the capital trust would be guaranteed by the Agricultural Financing Assurance Corporation to eliminate the debt assurance burden of the local government.
Sixthly, the income distribution was standardized and scientific.

　　The land management income of the Cooperative mainly fell into three parts after the production cost being excluded: 1. The annual fixed payment for land transfer would be almost 1.7 million yuan; 2. The trust capital interest would be paid regularly in accordance with the contract; 3. The net income would be distributed according to the proportion of 1:3:6 respectively to the Trust Corporation, the Land Stock Cooperative as well as Shengshui Cherry Professional Cooperative.

　　No.3 Significance: New Mode, New Approach And new Thinking

　　This time, this Land Trust was the first case related to land trust in Beijng, and for the first time, the new land transfer mode - land trust was introduced to Beijing suburb, enriching the approaches of land transfer and management in the capital with prominent significance:

　　1.A new mode to revitalize rural land resources has been explored.

　　Land trust transfer, a new land transfer mode, has realized the goal of separating the rural land rights of ownership, contract, management as well as usufruct, and the management rights have been open comprehensively, meanwhile, on the basis of professional advantages of the trust corporation, more effective market operation has been adopted, the risks have been dealt with and the farmers’ legal rights have been safeguarded. So it is more effective for the rural lands to be revitalized.

　　2.New financing channels have been provided for agricultural management.

　　In the past, the agricultural management relied on the small amount of loan from  rural credit cooperatives and banks, on agricultural mortgage assurance, or on the mutual assistance finance or private lending,either all those channels were too strict with the guaranty and the manager, or they did not have enough capital or the risks were too high. After the adoption of land trust mode, based on the platform of trust corporation, it could help finance the capital market connected with the related agricultural project, further providing the agricultural management with new financing channel.

　　3. New approaches were provided to protect farmers’ land rights

　　The core of land trust is based on the establishment of the entrusted agency law relations, and the entrusted corporation was obligated to protect the lands of the farmers’. With the help of trust corporation’s capability advantages on the aspect of market operation, risk prevention, information acquisition and even rights protection by law, farmers’ land rights could be better protected.

　　4. New approaches have been provided for the linkage of rural-urban resources factor markets

　　Because of the restraint of dual system, the current linkage of rural-urban element markets are not smooth enough. And the land trust mode relied on trust corporation as the intermediary, On the one hand, land management rights could be organized effectively with the adoption of trust mechanism, and on the other hand, based on the advantage of regarding trust corporation as the financial institution, the linkage between rural land resources and urban finance, sales channels, management, technology, information related elements has been realized, achieving the goal of effectively connecting rural and urban factor markets.

　　5. New approaches have been provided for the rural financial innovation

　　Currently, the oriented styles of rural finance are still traditional ones like the small-amount rural credit and loan as well as guaranteed mortgage, and the range of service was relatively narrow, facing the serious conflict between traditional commercial finance and the fact of rural system. With the adoption of relatively flexible trust mechanism, by means of establishing trust agency and realizing “the separation of three powers”, new approaches to develop related innovation have been put forward by connecting the innovation of financial system and the fact of rural land system.

　　No.4 In response for the suspicion: talking through the facts

　　With the recent land trust practice in various areas, some people misunderstood  the trust and then they proposed their suspicions and worries, thinking that this would result in problems like farmers’ benefits being exploited by social capital, land degeneration, and violating construction. This time, the implementation of Shuizhang land trust could avoid the above problems, making it possible that land would not degenerate, the land utilization would keep unchanged, and at the same time, farmers’ benefits could be protected and those suspicions have disappeared:

　　Firstly, the cooperatives have got the urgently needed finance and related factor resources, so the lands could be vitalized effectively.

　　By implementing the land trust, Shengshui Cherry Cooperatives in Shuizhang has got the capital of 18 million to develop the urgently needed seedlings, to introduce the technology and to, upgrade the infrastructure and market sales. In this way, the capital bottleneck could be broken through and the goal of smooth development could be realized. On the occasion of the smooth cooperatives development, the management conditions of Shuizhang has turned better, and taking the advantage of land trust, the effective linkage between the 1,680 mu lands and the urban capital factor market in Shuizhang could be successful. In this way, the market value of its land resources could be effectively found out.

　　Secondly, the lands were still in the hands of farmers’, and all the lands were used to develop agriculture.

　　With the introduction of the Trust Mode, although the land management rights have suffered a series of land transfer, what could be sure is that the collective quality of the transferred lands remained the same. When the contracts of land trust were due, it is the Trust Corporation’s responsibility to return the lands to Land Cooperatives. Besides, in the negotiation stage, the Shuizhang Land Trust emphasized that the land utilization would remain unchanged, which has also been written in the contract. From the practical situation, all the 1,680 mu trust lands in Shuizhang have been used to develop the modern agriculture, and there has been no violation to the construction as well as no plan for houses with limited property rights under construction.

　　Thirdly, farmers have the absolute predominance and they have been those with the largest amount of benefits.

　　Voluntarily organizing the Land Cooperatives and Farmers’ Professional Cooperatives as the entrusting party and the managers respectively, the farmers could have the final say in the whole process including property transfer, land management as well as income distribution, and they could be the absolute power body and the major one to get benefits. From the allocation plan, besides the transfer fee of 1,000 yuan per mu, farmers could get the dividends from 60% of the turnover floating income in land management, and the Land Stock Cooperative would get 30% of the turnover floating income which is going to be used for future dividends to the farmers. Besides, peasant households participating in the professional cooperatives could get wages and dividends form the cooperatives. So in this way, farmers could be the real ones benefiting the most.
Fourthly, the Trust Corporation would be the major one to take the risks.

　　According to the trust mode and Shuizhang Trust Contract, Trust Corporation should be responsible for the rigid payment of farmers’ land incomes, and for the losses caused by the delay, which means that if Shengshui Cherry Cooperatives could not pay the transfer fees in accordance with the contract, then the Trust Corporation would be responsible for paying the transfer fees to the farmers and if it is the Trust Corporation that caused the losses of the lands, then the Trust Corporation should compensate the farmers with their own assets. In fact, Trust Corporation itself has become the major one to take the risks in the whole process of land management.
Fifthly, the mainstream of market factors could be from urban areas to rural areas.

　　Seen from the main flow direction of the market factors, the unfair phenomenon of “producing much but contributing little” has changed in the rural land management invested by traditional urban capital. The Trust Corporation relied on the linkage between financial markets and urban factor markets, and key factors in the urban like capital, technology, management, service, information and faculties have been introduced into the land management process of Shuizhang. And in this way, local farmland management and agriculture modernization has been promoted, and the integrated development of the village as well as farmers’ increased harvests and incomes have been activated. Seen from the overall, urban areas were the origins of market factors and rural areas were obviously the acceptors of market factors.

　　No.5 Enlightenment: what kind of practical problems could Land Trust solve?

　　By developing land trust, many practical problems occurred in the process of current rural land transfer and in the management  process could be solved:

　　Firstly, in the land transfer process, the problem of taking efficiency and fairness into consideration has been solved.

　　In the early days, the land transfer was either transferred dispersely by farmers or accumulated and transferred under the guidance of the government. The former usually resulted in low transfer efficiency and high management risks; although the latter could increase the land transfer efficiency and decrease the management risks, the farmers’ will could not be fully taken into consideration. With the introduction of  Trust Corporation as the intermediary and taking advantage of the market to accumulate and transfer lands, problems of farmers lacking negotiation abilities could be solved, and the violations to farmers’ rights and benefits caused by government and accumulated land transfer could be avoided, and so the contradictions between efficiency and fairness could be well solved with the method of market.

　　Secondly, the problems of risks in the process of land transfer and management could be solved.

　　One of the advantages of trust is its brilliant risk management. On the one hand, Trust Corporation could rely on the mature system on the aspect of risk control and achieve the goal of effective measure, assessment, solution and prevention. In this way, the risks in land transfer and management could decrease to the largest extent. On the other hand, according to the trust mode adopted to protect the bailors’ capital, the Trust Corporation  should be responsible for rigid payment for the farmers’ land incomes, and it should compensate the losses it has caused, which means that if Shengshui Cherry Cooperative could not pay the land transfer fees in accordance with the contract, then it would be the Trust Corporation's duty to pay it to the farmers, and if the land property losses were caused by Trust Corporation, then the Trust Corporation should compensate the farmers with its own assets. So this kind of mechanism could further decrease the risks in land transfer and management.

　　Thirdly, the question who is to farm has been answered with the adoption of farmer-oriented land management.

　　The mechanism of “double cooperatives” has been adopted by Shuizhang Land Trust Transfer, which means that the organization and accumulative transfer of land contract for the management right was conducted by Land Stock Cooperative and the professional cooperatives organized by farmers would be the land acceptor. This kind of mechanism was different from that one with the characteristics of transferring to big enterprises and the social capital, ensuring the oriented rights of farmers’ in the process of land management and agricultural production, and further protecting farmers’ oriented rights in the process of land income distribution. In this way, the exploitation to farmers’ benefits from big enterprises and social capital, and approaches of increasing farmers’ employments have been provided. Therefore, “the principle of farmers farming their own lands” could be ensured and the question of “who is to farm” has also been well answered.

　　Fourthly, the capital bottleneck problem of agricultural modernization has been solved.

　　As the operation corpus, Shengshui Cherry Professional Cooperative is in the development bottleneck period now, and it needs comprehensive upgrade of hardware and software including operation management and basic infrastructures, and the largest barricade it is facing is fund shortage. On that account, besides the land trust, Shuizhang land trust transfer has also established a fund trust for the land management of land acceptors’ and provided the capital of 18 million for Shengshui Cherry specialized Cooperative to support its production expansion, equipment and operating management improvements. In this way, its capital bottleneck problem in the process of upgrade and transformation has been solved, and it could change to be better while approaching to the standard development.

　　Fifthly, with the promotion of agricultural land transfer, the steady land contract relationship could be ensured.

　　On the farmland transfer, the Party Central Committee recently has proposed the policy of “implementing the collective ownership, stabilizing farmers' contract rights and allowing flexibility of land management rights”, meanwhile, it also emphasized on protecting farmers’ income rights. By means of organizing Land Stock Cooperative, land trust transfer could clarify its interior property-rights, with the adoption of power separation mechanism, the separation of land collective ownership, farmers’ contract and income rights as well as the management rights could be fulfilled. Under the premise of keeping land collective ownership and the contract relationship unchanged, the market rights of land management could be fully vitalized. With the promotion of the villages entering the market and fully exploring the market values of land management, the steady relationship of rural land property could be ensured, and the basic operation mode has been effectively protected.

　　Sixthly, with the implementation ofbe meens of the problem of utilizing the farmland with agricultural purpose has been solved.

　　Trust, equipped with the prominent feature of normativity,  is in its implementation process. Trust Corporation should fulfill not only its obligations promised in the contract, but also its various obligations stipulated by law. This would be good not only for monitoring the operation of Trust Corporation with the help of exterior mechanism, but also for improving the normativity of land operation driven by trust mechanism. With the help of the financial supervision mechanism, rural land utilization could be ensured to be in accordance with the law and regulations, and the goal of utilizing the farmland with agricultural purpose could be realized. Therefore, after the adoption of land transfer, the current tendency of “farmland conversion” and “non-food” could be effectively prevented. From the practice situations in Shuizhang, all transferred farmlands have been used for developing modern agriculture and its related industries, and there were no phenomenon of non-agricultural operations or real estate development.

　　Seventhly, the scientific benefit distribution mechanism should be established, and the problem of maximizing farmers' benefits in the process of marketalization could be solved.

　　Shuizhang mode has ensured that farmers have become the largest beneficiaries by designing the land trust income distribution mechanism in a scientific way. Villagers in Shuizhang could get two kinds of profits from the land transfer management: one of them would be the land transfer fee of 1,000 yuan per mu, and the other would be the excess returns from land management; and in Shengshui Cherry specializedCooperatives, the land acceptor, members could not only get the above-mentioned incomes, but also get wages from the Cooperative. On the contrary, Trust Corporation would get only a small amount of money for management services, and the village committee and government would get no profit. From this perspective, farmers would really be the largest beneficiaries in the whole process of land trust transfer.

　　With the development of land trust, under the premise of keeping the farmlands what they were before and utilizing the farmland with agricultural purpose, not only could Shuizhang Shengshui Cherry Cooperative get the development capital in urgent need, but also farmers' increased incomes and village collective economic development could be activated. The risk of land management has been lowered, land resources have been vitalized, and at the same time, farmers' dominant rights in land management and farmers' benefits have been protected.

　　Expert Reviews

　　Dang Guoying: Researcher of Chinese Academy of Social Sciences Rural Development Institute, Director of Urbanization Rural Construction Professional Committee

　　Cai Jiming: Director of Political Economy Research Center of Tsinghua University

　　Yang Haihao: President of Charoen Pokphand (China) Investment Co., Ltd.

　　Ma Qingbin: the Divison Chief of National Development and Reform Commission China International Economic Exchange Center

　　Jacques Saint Marc: French Prime Minister's Special Representative, Leader of Sino-French Cities Sustainable Development Cooperation Project

　　Zhang Youyun: Deputy Director of CIUDSRC, Executive Vice Chairman of China Association for Employment Promotion,  Member of China Economic and Social Council

　　Dang Guoying: Land Trust Shall reduce transaction Costs

　　Observing some agricultural advanced countries, it seems  that there is no land trust in the agricultural field. It is not to say that  we can't use it for others did not use it before, what I have considered is why we do it. Provided that becasue the small force of the farmers and the farmers might lose to negotiate with big companies , I noticed that in Shuizhang village case, medium and small farmers have established the land stock cooperation in advance, and the land stock cooperation organized by the farmers is to discuss the price. It  has already happened that  the individual may negotiate with big organized units, this is one of reasons. Second, agricultural cycle is relatively long, if the trust institution has played an organization role, so in one or two years after the successful organization and stable order, the trust institution need not do anything, However, in Shuizhang village case, the trust institution  will take away 10% management fee from annual profit of the professional cooperation, this transaction is essentially economies of scale. Economies of scale shall calculate general ledger,  the above content shows that 10% of agricultural final output is allocated by the trust segment.

　　In addition, I also noticed a detail, these lands belonged to the villagers, profession cooperation operated land was transferred from the trust institution, and the members of profession cooperation were villagers. That is, the villagers' land was transferred to profession cooperation through stock cooperation and trust institution, and farmed by some villagers, which means that it ran a big circle in the village by trust institution. At the same time, it is also mentioned in the case that in fact, it does not make much sense of small farmers conducting professional cooperation, inefficient, it must be big farmers. Therefore, if several big farmers have formed profession cooperation by themselves , can it negotiate with the individual directly or through trust institution? If the big farmers can directly negotiate with the individual, it means land trust framework does not get rid of such a land colletion process through negotiations. If the farmers do voluntarily choose land trust, then according to the principle of reducing transaction costs in economies of scale, our farmers can actually directly participate in the negotiations.

　　Cai Jiming: Land Trust is the Only Desirable Operation Mode

　　Today's theme of the Summit is new urbanization and land utilization, new urbanization involves land issues, but not all the land issues are directly related to the urbanization. The land system reform we are talking about includes three kinds of land: First, land acquisition. In the urbanization and industrialization process, urban development need to take up rural land, in the past, whether or not the public interests or non-public interests, we all take the form of government expropriation, which breaches The  Constitution. The Constitution expressly regulates that the state confiscate land for the public interests, but urbanization and industrialization are not the public interests, therefore, this land acquisition system must be changed, which relates to the urbanization. Second, the rural collective construction land. The Third Plenary Session of the 18th Central Committee of the CPC clearly stipulates to build a unified national construction land market, which is related to the new urbanization. Third, whether or not the homestead of rural collective construction land should flow. With a large number of rural population entering into the city, the homestead is idle, the idle homestead is also the construction homestead. Can we render them into the construction land market by increasing or decreasing the index or other methods? These three kinds of land are related to the urbanization. Now we are talking about the case of agricultural land, and this agricultural land is not directly  related with the urbanization.

　　What are the meanings of Shuizhang village case? Its significance is that rural collective land was distributed to the houshold 30 years ago, but they were small-scale operators with less than 10 acres of land per capita, which was equivalent to 1/400 of the United States, 1/40 of the European Union, 1/4 of Taiwan, Japan and South Korea. With these lands, farmers per capita income is around 500 yuan per acre of land. This income can not make farmers out of poverty to fairly well-off, so the land was collected to the minority through the circulation to achieve the scale of operation. Then to what extent is the circulation scale? No less than 100 acres, it means that a large number of surplus rural labors will be transferred out, which is related to the urbanization. Improvement of agricultural labor levels and the system reform allow rural collective land ciculation, the scale of original farmers cultivating land has been expanded, and the rest agricultural labor forces enter into the city, which speed up the process of urbanization, which is related to the subject of our discussion today.

　　Shuizhang village land trust is a new way. What is the role to the urbanization? The original 1,600 acres of land serves a number of agricultural population, now it has been operated by Shengshui Cherry Cooperation, so how many labors are absorbed by 1,600 acres of land ? Other agricultural population is detached from the land into the city? This is the first question I want to mention, and it is related to China's urbanization. Second, the case shows that this approach avoided de-ruralization and de-food production, it really avoided de-ruralization, because it originally  produced cherries and blueberries, and it continued to operate cherries and blueberries after the land trust. It does not avoid de-food production, because there is no growing food. This problem indicates that land trust only has profit margins in these areas. Otherwise, if it still grows food in 1,600 acres of land, then it is difficult to pay 1000 yuan per year per acre land criculation fee to the farmers by just relying on the income of grain. It also poses a problem which field will be chosen by the land trust and other social capital entering into the countryside. In the event that it is a pure food production, are they still enthusiastic? Probably not. It shows that our current agricultural policy and food policy need to be improved, if planting the grain is unprofitable, then enterprises are less likely to invest in it. Therefore, we need to think how to really avoid de-food production? If a large amount of capital entering into the countryside to grow cherries, blueberries, fruits, pears and peaches, then who will solve the problem of our rice?
Just go back to the issue mentioned by Professor Dang Guoying, 1,600 acres of land was originally run by the cooperation, but there have been financial problems and the land trust was implemented now, in fact, farmers granted land use right to the trust company, and then the trust company  granted the use right to the cooperation. Why does a  round exist? Why not are 1,600 acres of land managed by the farmers themselves? The difficulty is nothing but the fund. Why do our financial policies not give direct financial support for the, agriculture? Because there is is no collateral for loans in the countryside, therefore, under the current mechanism and system, especially before the reformation of the agricultural land and homestead system, land trust is the only desirable way.  

 
　　Yang Haihao: Land Trust is a True innovation of Rural Finance

　　I was very enlightened by this case. Before a thorough reformation of the rural land system, the land trust is indeed an innovation in rural financial system, and the rural financial system innovation is also very highly demanded in practice. Land trust is similar to the work we have done before. CP Group also needs the land and needs to deal with the farmers in building livestock breeding base in Yukou Town. The government has played a leading role in this process and jointly combined leading enterprises, agricultural cooperation and financial institutions. Even so, the financing problem can't be solved, how to deal with it? Therefore, CP Group and Pinggu state-owned company —— Guda Company jointly set up a platform company. This platform company has played a role similar to the trust institution. We have racked our brain to come up with a solution for financing, that's the platform company. Because at that time, the land management rights can not be secured, we signed a 20-year irrevocable property right agreement with the agricultural cooperation to get the bank loans.

　　If Shuizhang Village project has been recognized in North China, it can really succeed in North China, then our projects in North China may directly contact the trust institution. Land stock cooperation guarantees the farmers after the land circulation, while trust institution guarantees land ownership and management rights, which has the same functionality with the aforesaid platform company, but it is obvious that the trust institution is more neutral, which is a real innovation in rural financial system. I think the rural financial innovation shall be regulated, which need solve several problems: First, who registers the shock cooperation. Second, the trust institution shall be registered by the People's Bank of China, which may be fully guaranteed by  the Trust Law. Therefore, land trust is in line with the reform of land circulation after the 18th Central Committee of the CPC.   

　　Ma Qingbin: Let the Market Decide the Land Reform

　　In China today, there is a well known theme, that's the reform, because land reform relates to China's future. We are all practitioners in the tide of reform. I can understand the enormous pressure of Shuizhang Village reform, because any reform tasks are very complicated, sometimes many problems in the reform are unexpected and invisible, we have to be adaptable, therefore, adhereing to it relates to  China's development.

　　It is said in the case that What we do is line with the laws and regulations, but it is actually illegal, because a provision of Land Administration Law regulates that rural collective construction land can't enter into the market. Not long ago, the state issued a file proposing 33 counties such as Daxing District and other areas as the  rural land system reform pilot. The file shows that applying to the Standing Committee of NPC for suspending the article of Rural collective construction land can't enter into the market.in Land Administration Law. It means that we allow reform, but it is not in accordance with the laws, the reform is the needs of social development. This raises a problem, why should it be reformed? Because the farmers were turned into masters by fighting the landlords and dividing the land, the People's Republic of China was found was founded. But it was found afterwards that fragmented operation can make the farmers survive, but it can't make them be rich, so we also need the reform, this reform is to winning the landlord, integrating the land. Today's landlord understands the marke and business, and integrating the land does not mean that the land will be given to this group of people, but the separation of three powers. The reform fundamentally guarantees the interests of farmers and safeguards the interests of each of us, because maybe today you are a urban resident, but a few years ago or earlier generations, in fact, we all came from the farmers, if the farmer's problem is not solved, the problem of the future development of China won't be resolved.

　　I would also like to talk about a suggestion that  Langfang Yongqing case and Shuizhang village case have a common feature that they are located around the big city, the reform of China's more remote areas actually have greater difficulties. Guangdong and Zhejiang as the forefront of reform annually have a total amount of seven trillion yuan GDP, while Qinghai and Gansu's GDP are only two or three hundred billion yuan, the gap is so tremendous. Therefore, I personally regard that the pace of reform is now too small, just confined to some people. In addition, the reform must follow the principle of the market, charging the fees and collecting the taxes. Each performs its own duties. The government can't always want to look after it, so the farmers will always wonder if you have done some bad things. Finally, the issue of risk, there is no risk between Party A and Party B, and the enterprises shall always bear all the risks, but the world's toppest enterprise may collapse in one day, if the enterprises have collapsed, who will take it over? The signing agreement is only a piece of blank paper. Therefore, the parties must be diversified.

　　Jacques Saint Marc: the Purpose of Urbanization is the Better Construction City Within A City

　　Today I heard a lot of Chinese urbanization success stories, there are similar cases in France. As a member of Sino-French cities sustainable development project, and now my work in China is related to the urbanization in these two aspects. In France, urbanization development mainly focuses on how to improve urban management, but the purpose is not to build City Outside A City, but how to build City Within A City better. Because if there is no suburbs, then a city would not be called as the city, that's to say, the city is from the countryside; but if the suburb is only the suburb, then it is not the content I want to say today, which is a very important concept.

　　I take a French city - Lyon as example. Lyon is located near the port. The suburbs of Lyon was a typical predominant agricultural area before 1960s,, but as time goes on, people's residences have been gradually moved from farm areas to the South. At that time, people may quickly go to the city only by riding the vehicle. Therefore, in around 1990, the number of vehicles in French suburbs has been continuously increased, which brought a series of changes to the city's development. Therefore, it is decided that 75% of  new urbans would be built within the Lyon city. After the urbanization renovation, the river bank has been transforred into a new city circle with developed infrastructures. There are shopping malls, hotels, cinemas, schools, apartments and so on, reaching a perfect and humanistic situation. Meanwhile, with the development of the river bank, people do not go to the suburbs for vacation, they can feel the same style in urban riverside as that in suburbs. This is the reason why we emphasize the development of City Within A City rather than putting the construction of suburbs in the major construction rank.

　　The geographic location of river confluence inside Lyon is also very superior, in France, the similar region areadly has a very large area, therefore, it has also been built as the city center and for a reasonable re-use, so that the port space and industrial space are perfectly combined.

　　Sino-French cities sustainable development cooperation project has worked with many China's Ministries and Developments, and Comprehensive Institutes. Now our common task is to study how to make our sky be bluer in the urbanization process. Because in the urbanization construction, we have to remember that we have only one planet, so we must not only create Beijing's blue sky, blue sky around China, blue sky in Paris and France, but also create the blue sky all over the world.

  
　　Zhang Youyun: Urbanization Includes both Innovation Development and the Transformation of the Past

　　Just now, we talked a lot about the land circulation, which is to better intensively use the land and promote the urbanization. After hearing Mr. Jacques Saint Marc's speech, I was mostly impressed that when we make use of the land for a better development prospects, we should not only see those new land outside the city, but also to see the land inside the city. If most of newly developed land are in the countryside, it requires us to make a comprehensive design by both comprehensive innovation and the combination of the old transformation and new creation. Because one-sided pursuit of something new is not a goal of our urbanization.