Chapter XIII. Fundamental National Policies
Section 3. National Economy
National economy shall be based on the Principle of the People’s Livelihood and shall seek to effect equalization of land ownership and restriction of private capital in order to attain a well-balanced sufficiency in national wealth and people’s livelihood.
All land within the territory of the Republic of China shall belong to the whole body of citizens. Private ownership of land, acquired by the people in accordance with law, shall be protected and restricted by law. Privately-owned land shall be liable to taxation according to its value, and the Government may buy such land according to its value.
Mineral deposits which are embedded in the land, and natural power which may, for economic purposes, be utilized for the public benefit shall belong to the State, regardless of the fact that private individuals may have acquired ownership over such land.
If the value of a piece of land has increased, not through the exertion of labor or the employment of capital, the State shall levy thereon an increment tax, the proceeds of which shall be enjoyed by the people in common.
In the distribution and readjustment of land, the State shall in principle assist self-farming land-owners and persons who make use of the land by themselves, and shall also regulate their appropriate areas of operation.
Public utilities and other enterprises of a monopolistic nature shall, in principle, be under public operation. In cases permitted by law, they may be operated by private citizens.
With respect to private wealth and privately-operated enterprises, the State shall restrict them by law if they are deemed detrimental to a balanced development of national wealth and people’s livelihood.
Cooperative enterprises shall receive encouragement and assistance from the State. Private citizens’ productive enterprises and foreign trade shall receive encouragement, guidance and protection from the State.
The State shall, by the use of scientific techniques, develop water conservancy, increase the productivity of land, improve agricultural conditions, plan for the utilization of land, develop agricultural resources and hasten the industrialization of agriculture.
The Central Government, in order to attain balanced economic development among the provinces, shall give appropriate aid to poor or unproductive provinces.
The provinces, in order to attain balanced economic development among the hsien, shall give appropriate aid to poor or unproductive hsien.
Within the territory of the Republic of China, all goods shall be permitted to move freely from place to place.
Financial institutions shall, in accordance with law, be subject to State control.
The State shall extensively establish financial institutions for the common people, with a view to relieving unemployment.
With respect to Chinese citizens residing abroad, the State shall foster and protect the development of their economic enterprises.