Two incidents in the past month in rural farming areas in China have been attracting significant attention. One occurred in Wenzhou, Zhejiang Province, when a village leader who led local farmers in a protest over the compensation they received for being evicted from their land was found dead after a traffic accident.
The other, in Zhumadian, Henan Province, involved a female farmer who died after being pinned under the tyre of an excavator near her home.
The two incidents were both tied to the issue of land acquisition, and were both officially described by the authorities as accidents. But these claims were treated with scepticism by locals, with some even claiming the incidents were nothing short of premeditated murder.
Colleagues of mine have travelled to the two areas concerned to interview those involved. And the news they brought back was sobering. They told me that there was a pervasive distrust among villagers of local government, with some farmers even getting down on their knees to plead with the reporters to expose the truth. This desperation appears to have been prompted by the gradual loss of vital farmland over the last 10 years to make way for the needs of a red hot real estate market. The compensation for lost land has apparently been minimal.
In the Wenzhou case, tensions seem to have escalated over claims that the one-time government payout for acquiring farmers’ land is perhaps a tenth of the price per acre that the government has been selling it to developers for. As a result, there have been numerous protests by farmers over demolition work in recent years—relations between farmers and local government are tense, and have become a catalyst for social instability.
When I visited Hebei Province to report on land issues there, local farmers told me that they’d continue to protest, or even commit suicide, if the government payouts they are offered are too low.
Yet in reality, troubling as all this may sound, these recent events are only the most visible consequences of a deeper problem—China's economic development model has reached the stage where it will have to change.
One consequence of recent developments has, for example, been that governments are no longer relying so much on tax revenues, and are instead depending much more on land sales to generate revenue. Take Beijing, for example. Its revenues from selling land were 163.85 billion yuan ($24.8 billion) in 2010—a dramatic jump on a year earlier and accounting for about 70 percent of its revenues.
The central government is aware of the seriousness of the situation and has been calling for change to the model for economic growth. But interest groups with vested financial interests have hampered attempts at such change.
Members of the public have started to liken these land sales revenues to drugs—hard to quit once you get hooked on them.

John Chan
This is the first constructive criticism article appeared on this site. The author exposed probably the most critical problem facing the survival of the CCP. The wide spread real estate drug problem would not happen under Mao, Mao would send all those involved to re-education camp to cleanse their corrupted mind and spirit, on the hand Mao would keep China poor for good. Deng brought better living standard to China at the price of corruption. Both characters are controversial.
Other than real estate drug, illegal mining, grave robbing to sell ancient artifices, speculation on foods, etc. are the other serious problems in China too.
A complete independent judicial system manned by people with incorruptible moral value and integrity, supported by a media with a strong sense of to serve and to protect the people will be the answer to cure the disease of corruption of the privileged classes in China. The relentless attack on China by the West makes the chance for those two institutions to become successful in fighting corruption and other mandarin-merchant diseases not optimistic.
Mu Chunshan
Hi john:
I quite agree with you that a complete independent judicial system should be established to tackle the corruption and other social issues. But in the near future, this system is difficult to set up. We all know the reason.
In recent years, reporting environment of the media is actually getting worse, so many journalists have been furious. Media circles have a common attitude of dissatisfaction to the regime, just as the villagers in Wenzhou have not trust to the local government.
This is very scary.
We all saw what Tunisia, a North African country happened. Self-immolation of a street vendor caused the Butterfly Effect. As a result corrupt president fled to Saudi. Many Chinese journalists are talking about it in private occasion. They want to know whether the similar scene will be staged in China or not.
I have to say Chinese government and CCP understand the situation as to have formulated a plan for the next 5 years to improve people’s living standards as a more important task. This is also the necessary measure to ease social contradictions.
But it is impossible to eradicate corruption. So for me, the fuse of explosion has not yet lifted.
John Chan
Throughout the history of China it is always the rotten low and mid level mandarins that caused the fall of dynasties. Policies with good intention from the top were always distorted so out of shape and became plagues for the people. It seems Mao has failed to eradicate corruption from the gene of Chinese.
If self-immolation of a street vendor can cause a change to a nation, the amount of people died in the protests in China should clean up corruption in China long time ago. I think China should consider lucky if the eruption in countryside is only limited to the scale of disturbance in Tunisia, not the scale of culture revolution.
China’s effort to clean up corruption is severely hampered by the West. The West refuses to extradite the corrupted officials hiding in the West back to China for prosecution in the name of human rights. The corrupted officials hiding in the West spent all their money on lawyers to prevent themselves from being deported back to China, etc. At the end all those ill-gotten money benefits the West.
The Foreign Affairs department of China must be part of the action to clean up the corruption in China, they must get all countries in the West to send those corrupted officials hiding in their countries and the ill-gotten money of those corrupted officials back to China to face prosecution right away, then the officials in China will hesitate to be involved in corruption on the believe that they can get away with the crime and enjoy their ill-gotten gains in the West.
Meanwhile the journalists in China have to be courageous and continue to speak out for the people despite all the odds against them. I hope the journalists in China can help to defuse the explosion before the fuse is lit.