On January 19, an executive meeting of the State Council, China's cabinet, gave in-principle approval to a draft regulation on land acquisition and compensation, which is expected to better protect homeowners.

The draft says compensation paid to homeowners should not be lower than the sum of the market price of the property, the cost of moving and temporary accommodation, and losses caused by suspension of business.

Projects involving acquisition of homes on state-owned land should be included in the annual economic and social development plans of the government, the draft says.

It also emphasizes expansion of public participation in the approval of home acquisition plans.

Before making decisions, relevant agencies should assess risks to social stability and property developers are prohibited from being involved in removal projects.

The draft also prohibits the administrative enforcement of demolition.

Disputed cases shall be determined by the people's courts, it says.

After further modification, the draft will be submitted to the State Council for promulgation and implementation.