However, several industrial enterprises use collectively
owned land more cheaply or free of charge, by, for example,
renting collective land, using collective land as a shareholder in
an industrial enterprise, or utilizing state-owned land belonging
to the public with the permission of the municipal government.
The majority of these actors are “township enterprises”,
and the rent and fees that the industrial enterprises have to
pay in such cases are much lower than the market price. As
a result, it appears that land-use efficiency is lower and the
land-use patterns more extensive when below market prices
are paid for the land than when market prices are paid
(Table 5), especially with respect to gross output value and
investment.