What does the term San Tong Yi Ping refer to? Why is San Tong Yi Ping important?
Land in China is normally "sold" in its original condition not leveled, nor with the basic infrastructure. Land is said to be san tong yi ping when it is leveled and has been furnished with basic infrastructure or services.
Ping means that the land is flat or has been leveled. It is important to make sure that the flat or leveled land is the way you want it because flat or leveled land may mean land that is below road or flood level which would require you would to backfill before being able to use the land.
Tong literally means "through", or that the basic infrastructure has been "connected through" to the said land. These are: water supply, electrical power, road, telecommunications, sewer connections, drainage, gas supply and steam supply. It is important to verify what is provided and what is not.
To avoid misunderstanding and unnecessary disputes, it is important to check that the services provided meet your requirements. Depending on the location of the said land, it can be quite costly to have services connected or infrastructure upgraded. Therefore, do not rush to sign a deal just because the land price offered to you is only half of what it costs two kilometers down the road. Make sure that you fully understand what is provided and what is not and whether those provisions satisfy your requirements.
A simpler way is to work out your own requirements and specifications and give them to your Chinese counterpart to provide the costing. If the overall feasibility study shows that the project is still viable, make it a condition in your agreement that your Chinese counterpart shall be fully responsible for the provision of these infrastructures for an agreed lump sum cost.
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