According to the Law of Land Administration of People’s Republic of China, there are two kinds of land ownerships in China, i.e., state-owned land and collectively owned land. Collectively owned land includes the land in the rural and suburban areas of cities, except that it is otherwise owned by the state pursuant to law, and should be managed and administrated by the local rural economic organizations. It is articulated in particular by the law that the lands for homestead of farmers and the lands and hills for private use are also classified as collectively owned land.