Allowing industrial firms to access land at market prices and for a fixed period is the most useful way of improving land-use efficiency. To some extent, this form of land access resembles private ownership, except that the period for which the land is
owned in China is less than in Western countries. Thus, adopting private ownership of a land administrative system may be the most effective way to improve land-use efficiency. However, reliance on the markets to allocate land rights would be a great shock to township enterprises, which were short of fund but have a positive effect on accelerating rural development and improving employment of surplus agricultural labor. Furthermore, the enterprises’ ability to provide employment opportunities does not depend on whether or not land access rights are obtained at market prices or not. Therefore, it is necessary to retain a number of township enterprises that continue to rent land or use land as a shareholder.