Kashgar Economic Development Zone's zero-price land supply is a rumor—a legal risk checklist enterprises must read before investing in land.
Recently, a message circulated on online platforms claiming that "industrial land in the Kashgar Economic Development Zone in Xinjiang is being sold at low prices, that fixed-asset investments exceeding 50 million yuan can qualify for zero-price land supply, and that standard factory buildings are rent-free for 3 to 5 years," attracting the attention of many investors. However, the Kashgar Economic Development Zone quickly issued a statement refuting the rumor, clearly pointing out that the content is inconsistent with current policies and constitutes false information. According to relevant national laws and regulations on land management, industrial land is strictly prohibited from being transferred at zero price or below the legally established benchmark land price. All industrial land within the zone must be transacted through open market methods such as bidding, auction, or listing, and
As lawyers in Shenzhen, we are well aware of the information asymmetry and legal risks in the field of investment promotion. This rumor-debunking incident is not just about Xinjiang; it also serves as a wake-up call for entrepreneurs and investors nationwide: while pursuing investment opportunities, how can one identify false investment promotion information and use legal weapons to protect their rights and interests? This article will provide an in-depth analysis of this event from a legal perspective and offer practical operational suggestions.
I. Why Is Zero-Price Land Supply Illegal? Legal Red Lines Must Not Be Crossed
“Zero land price land supply” sounds highly attractive, but under China’s current legal framework, this is nearly an impossible promise to fulfill. According to Article 54 of the Land Administration Law of the People's Republic of China and the Provisions on the Assignment of State-Owned Construction Land Use Rights by Bidding, Auction, and Listing (Order No. 39 of the Ministry of Land and Resources), industrial land falls under the category of commercial land and must be transferred through public competitive methods such as bidding, auction, or listing. Any form of circumventing the market-based pricing mechanism is strictly prohibited.
Article 73 of the Land Administration Law clearly stipulates that where land is sold or illegally transferred in other forms, the competent department of natural resources under a people's government at or above the county level shall confiscate the illegal gains; where
In legal practice, we have seen many enterprises fall into difficulties due to trusting promises such as "zero land price" or "low-priced land supply." For example, in some places, local governments or development zones have signed "Investment Agreements" with enterprises in the name of "attracting investment," promising "zero land price" or "subsidized land price." However, in the end, these agreements were halted by higher-level authorities for violating superior laws, and the agreements were deemed invalid. Enterprises were unable to recover the huge amounts of funds they had already invested and even faced the awkward situation of having their land taken back.
It is worth noting that even if some regions indirectly reduce corporate land costs through fiscal incentives, tax rebates, and other means, such measures must be carried out within the scope permitted by law and undergo strict compliance review. Any act that directly promises "zero land price" is suspected of violating laws and regulations, and investors need to remain highly vigilant.
II. Legal Characterization of False Investment Promotion Information: A Minefield Where Administrative and Criminal Liability Coexist
Publishing false information such as "zero-cost land supply" and "3-5 years rent exemption" on online platforms not only misleads the public but may also violate the law. According to Article 25 of the Public Security Administration Punishments Law of the People's Republic of China, those who spread rumors, falsely report dangers, epidemics, or police situations, or intentionally disrupt public order by other means, shall be detained for not less than five days but not more than ten days, and may also be fined not more than 500 yuan.
If false information causes serious consequences, it may also constitute a criminal offense. Article 291 bis of the Criminal Law of the People's Republic of China stipulates the "crime of fabricating and deliberately spreading false information." Whoever fabricates false danger alerts, epidemic situations, disaster situations, or police alerts and spreads them through information networks or other media, or who, knowing the above information to be false, deliberately spreads it through information networks or other media, seriously disrupting social order, shall be sentenced to fixed-term imprisonment of not more than three years, criminal detention, or public surveillance; if serious consequences are caused, the offender shall be sentenced to fixed-term imprisonment of not less than three years but not more than seven years.
In the first half of 2026, the Ministry of Public Security investigated and handled over 170 cases of online rumors generated using AI tools, and依法 prosecuted more than 190 individuals. This data highlights the country's strong stance against online rumors. For entrepreneurs, forwarding such unverified investment information in WeChat groups, Moments, or on short-video platforms, even with the intention of sharing "business opportunities," may result in legal liability for spreading false information.
From a civil law perspective, false investment attraction information may also constitute false advertising. According to Article 8 of the Anti-Unfair Competition Law of the People's Republic of China, business operators shall not make false or misleading commercial representations regarding the performance, functions, quality, sales status, user reviews, awards received, or other aspects of their goods, so as to deceive or mislead consumers. Although this provision primarily targets business operators, government departments or development zones that release false investment attraction information may likewise face administrative accountability.
3. How Can Enterprises Identify Investment Scam Schemes? A Lawyer Teaches You a Five-Step Due Diligence Method
With a constant stream of investment promotion information, how can companies sharpen their judgment? Drawing on years of legal service experience, I recommend that investors conduct legal due diligence from at least the following five dimensions.
**First, verify the policy basis.** Any preferential policy should be supported by official documents, and cannot be based solely on verbal promises or online posts. Enterprises may require the investment promotion party to provide formal red-header documents, government meeting minutes, or relevant local regulations. For example, the Kashgar Economic Development Zone's clarification this time was precisely because the false information did not conform to current policies. If enterprises had consulted the *Regulations of the Kashgar Economic Development Zone* and local land transfer rules in advance, they would not have readily believed it.
Second, verify the nature of the land and the transfer procedures. Industrial land must be obtained through the bidding, auction, and listing procedures. Enterprises can log on to the China Land Market website or the official website of the local natural resources bureau to check the land transfer announcement and
Third, evaluate the third-party assessment report. The factory rent is determined based on the market appraisal price issued by a third-party asset appraisal institution. Enterprises may request the investment promotion party to present the original appraisal report and may commission an independent institution to conduct a review.
**Fourth, review the contract terms.** Before signing the Investment Agreement or the Land Transfer Contract, be sure to have a professional lawyer review it. Focus on whether there are illegal commitments such as "zero land price" or "rent-free", and whether the clauses on liability for breach of contract, exit mechanism, and dispute resolution are complete.
Fifth, on-site inspection and public opinion monitoring. Visit the park in person, communicate with入驻 enterprises, and understand the real business environment. At the same time, use tools such as Tianyancha and Qichacha to check the background of the investment promoter, and pay attention to whether there are administrative penalties, litigation records, etc.
IV. From "Zero Land Price" to "AI Rumors": The Dual Challenges of Technology and Law
In this rumor-debunking incident, a noteworthy background is that the Ministry of Public Security reported investigating over 170 cases involving the use of AI tools to generate online rumors in the first half of this year. Technological advances have made the creation and dissemination of false information easier and more covert. AI can generate realistic government documents, videos of leaders giving speeches, and even forge investment-attraction policies, posing greater challenges for businesses in identifying the authenticity of information.
From a legal perspective, using AI to generate rumors not only involves traditional defamation-related offenses but may also violate the Personal Information Protection Law, the Data Security Law, and other regulations. The Measures for the Labeling of AI-Generated Synthetic Content, introduced in 2025, require that AI-generated content be accompanied by explicit labels. If businesses discover investment promotion information that appears to be AI-generated but lacks such labels, they should remain vigilant.
For Shenzhen enterprises, given the extensive industrial transfer cooperation between Shenzhen and regions such as Xinjiang, special caution is needed with such off-site investment promotion information. We recommend that before making cross-regional investments, companies commission lawyers or professional institutions familiar with local laws to conduct specialized due diligence, so as to avoid falling into legal disputes due to information asymmetry.
5. What to Do If You Encounter False Investment Solicitation? Rights Protection Avenues and Lawyer's Advice
If an enterprise has suffered losses due to false investment promotion information, it should protect its rights through the following steps: 1. **Preserve evidence**: Immediately collect and preserve all relevant materials, including promotional advertisements, contracts, payment records, communication records, and any other documents or electronic evidence related to the false information. These may be crucial for future claims or legal proceedings. 2. **Report to administrative authorities**: Report the false investment promotion activities to the local market supervision and administration department, where the case may be investigated and handled as an unfair competition or illegal advertising matter. 3. **Pursue civil litigation**: File a lawsuit with the People's Court against the responsible party, seeking compensation for losses, rescission of the contract, or confirmation of its invalidity. A clear legal basis should be provided, and evidence such as the false promotion materials and proof of damages should be submitted. 4. **Seek criminal recourse**: If the fraudulent activities constitute a criminal offense, such as fraud or contract fraud, a criminal complaint may be filed with the public security authority to pursue the criminal liability of the responsible parties, and a civil action for compensation may be filed in accordance with the law. Enterprises should also strengthen their internal risk controls, conduct thorough due diligence in future investment activities, and prevent similar risks from recurring.
First, preserve the evidence. Keep all communication records, promotional materials, contract texts, payment vouchers, etc., with the party soliciting investment, and have them notarized if necessary.
Secondly, administrative complaints. Report to the local Market Supervision Administration, Natural Resources Bureau, Commerce Bureau, and other departments, requesting investigation and punishment of false advertising practices.
Again, civil litigation. According to Article 148 of the Civil Code, if one party, by means of fraud, causes the other party to perform a civil legal act contrary to their true intent, the defrauded party has the right to request the people's court or an arbitration institution to rescind the act. An enterprise may claim rescission of the contract and demand compensation for losses.
Finally, criminal reporting. If the investment promotion party is suspected of contract fraud involving a huge amount of money, you may report the case to the public security organ to pursue its criminal liability.
As a law firm specializing in corporate legal services, Guangdong Zhiming Law Firm has handled multiple similar investment dispute cases. We understand well that behind every investment decision lies the years of hard work and dedication a company has accumulated. Therefore, we advise companies to conduct a legal risk assessment before making significant investments, and to avoid being lured by "extraordinary discounts" while overlooking the underlying legal risks.
Investment carries risks, and decisions should be made with caution. It is hoped that this "zero land price" rumor incident will help more entrepreneurs recognize the importance of legal compliance. If you encounter any legal issues during investment attraction or the investment process, please feel free to contact us. Guangdong Zhiming Law Firm will provide you with professional and efficient legal support.
