Beijing's Chaoyang District is labelled second class at 720 yuan (US$92) per square metre.

And land rated 15th class, such as land in the western provinces of Gansu and Yunnan is only 60 yuan (US$7.67) per square metre.

Of course, each government is allowed to set a higher standard according to its own situation.

"Through the rights transfer fee policy, we hope to promote a better industrial arrangement," Liao said.

"For example, in some coastal areas where land is scarce, some industries would not be suitable to these areas."

Liao said that some governments in the region already began to pick projects that benefit long-term development.

"Facing increased transfer fees, enterprises will take their own choices, and governments will also readjust their investment introduction policies," he said.

He said a gradual trend would result in some industries moving from the eastern part of the country to the central and western parts because the land prices are so low.

Wang said that rather than leading to price increases, the new scheme will help stabilize housing prices.

"The standard, which aims to curb the development of too much land for industrial use, will promote environmentally friendlier use of the land," he said.

Wang also said the country was devising a plan to allot 30 per cent of the income from land-use fees to help farmers who had lost their land.

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