Zhejiang launches auctions for sea areas

Individuals and companies looking to use sea areas in Zhejiang province to develop industrial or commercial projects are now required to gain the right to do so through auctions.

Taking the lead in a country with 12 coastal provinces and municipalities, Zhejiang promoted the approach via a new regional law that entered into force on Friday.

Experimental auctions have shown that the practice doesn't lead to a sharp rise in prices to obtain usage rights - only a 10 to 20 percent hike from the base price has been seen.