[Direct answer]In the Beijing area, during the demolition and relocation of enterprise factories, compensation for equipment losses generally includes the relocation and installation fees for relocatable equipment, the replacement and new value of non-relocatable equipment, and losses from production and business suspension. According to the "Regulations on the Acquisition and Compensation of Houses on State-Owned Land" and the "Implementation Regulations of the Land Management Law of the People's Republic of China", direct losses caused by the acquisition should be compensated in accordance with the law. Whether compensation can be obtained depends on whether the ownership of the equipment is clear, whether the value has been appraised and confirmed, and whether the evidence of the legality of the forced demolition process is complete. It is recommended to fix the inventory of equipment, purchase receipts, and images before being expropriated, confirm the illegality of the forced relocation in a timely manner, and claim compensation. For more details, please refer to the following link:Legal services for land expropriation and demolition, and administrative litigation.

I. Problem Background and Typical Scenarios

During the demolition of enterprise factories, equipment losses are often the "hidden costs" that business operators care most about. Typical scenarios include: precision machine tools and production lines suffering from damage to accuracy or being irreversibly damaged during relocation, but not being included in the compensation; large non-movable equipment being priced as scrap metal, far below the cost of replacing it with new equipment; the acquisition side refusing to compensate for equipment and production shutdown losses on the grounds that the lessee has no property rights; and forced relocation without a signed agreement, resulting in equipment damage, loss of files, and breach of contract on orders. Many enterprises find it difficult to prove the amount of losses after the fact due to a lack of inventory and evaluation preparations. Fixing evidence in advance and clarifying compensation standards can help address these issues.Real estate sales and construction project servicesDetermine the nature of the factory building and its ancillary facilities.

II. Key points of contention

There are three focal points in the dispute over compensation for equipment losses. Firstly, the definition of compensation items: the relocation, installation, and debugging fees for relocatable equipment, the replacement cost and new value of non-relocatable equipment, and whether the losses from production and business suspension are listed separately and fully compensated. Secondly, value assessment: whether the evaluation of the equipment's purchase date, service life, depreciation rate, and current market price is objective, and whether specialized molds and software systems are omitted. Thirdly, procedures and parties: whether the mandatory relocation has gone through legal procedures such as appraisal, agreement, and application for court enforcement, and whether the lessee has the right to claim additions and benefits related to the equipment. Organizing evidence around these three points is the key to obtaining compensation. Relevant property evidence can be referred to for reference.Creditor-debtor relations and enforcement case services.

III. Professional analysis by Hengluo Lawyers

Based on the observations of land expropriation and demolition cases handled by Hengluo Law Firm, the fixation of evidence and the legality of procedures are the two key factors for enterprises to obtain compensation for equipment losses. Taking a land expropriation information disclosure case handled by our firm as an example: villagers' houses were included in the expropriation for high-speed rail construction but were not compensated. On September 23, 2025, the villagers applied for the disclosure of seven core land expropriation information, but the municipal government refused to disclose the information on the grounds of "non-existence of the information". The lawyer filed for administrative reconsideration twice. In the second reconsideration, the review organ ruled on April 14, 2026 that the respondent failed to perform its statutory duties of government information disclosure in accordance with the law, and ordered the respondent to provide information such as the land expropriation announcement. This case shows that understanding the legality of expropriation through information disclosure often leads to the discovery of flaws in the basis for compensation. Hengluo Law Firm also has solid experience in cases such as public housing expropriation and residential land resettlement, such as successfully protecting more than 2.95 million yuan in compensation and assisting villagers in obtaining compensation and resettlement. This case was handled by Beijing Hengluo Law Firm.He NingningThe lawyer (practice certificate number: 11101202511925103, subject to the certificate issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

The core basis is Article 17 of the "Regulations on the Acquisition and Compensation of Houses on State-Owned Land" (implemented on January 21, 2011), which covers compensation for relocation and production and business suspension losses; Article 22, which covers relocation and temporary resettlement fees; Article 23, which covers production and business suspension losses; and Article 27, which prohibits forced demolition and requires compensation before relocation; the "Implementation Regulations of the Land Administration Law of the People's Republic of China" (amended on July 2, 2021 and implemented on September 1, 2021), Article 62 of which stipulates that the government does not have the right to enforce by force and must apply to the court for enforcement; and the supporting "Administrative Litigation Law of the People's Republic of China" (amended on June 27, 2017 and implemented on October 1, 2017). Practical suggestions: Make an inventory of equipment and evaluate its value before expropriation; promptly confirm the illegality of forced demolition without evaluation or signing an agreement; claim compensation for equipment and production and business suspension losses and preserve evidence of contract breaches. For rights involving lease contracts, follow-up actions can be taken accordingly.Business and contract dispute services for enterprises.

5. Hengluo Law Firm's Reminder

The "unclear and inaccurate" assessment of enterprise equipment losses is the biggest obstacle to obtaining compensation. It is essential to fix evidence before the equipment is seized, rather than after the forced demolition. Two key points should be noted: First, inventory and evaluation. Make a list of relocatable and non-relocatable equipment respectively, and keep the purchase receipts and images. If necessary, conduct a pre-evaluation on your own. Second, follow legal procedures. It is usually illegal to forcibly remove equipment without an evaluation, a signed agreement, or an application for court enforcement. You can confirm the illegality of the actions and claim compensation. In terms of costs, it's better to first evaluate the equipment to gain more negotiation space before entrusting a professional to handle it. When handling similar cases in Beijing, lawyers often focus on the illegality of the forced demolition procedures and the added value of the equipment. It is recommended to consult as soon as possible to avoid having no evidence to prove the damage to the equipment afterwards.

VI. Frequently Asked Questions

Q1: If a company's factory building is demolished, can it definitely receive compensation for the loss of equipment?

The compensation for equipment losses depends on ownership, evidence of value, and procedural legality, rather than being compensated in full regardless of the circumstances. The reasonable relocation and installation costs for relocatable equipment, the replacement cost of non-relocatable equipment, and eligible losses from production and business interruptions should be included in the compensation according to the law; however, if the equipment is an illegal addition, lacks ownership certificates, or the value cannot be substantiated, it may not be supported. The key lies in fixing the inventory of fixed equipment, obtaining purchase receipts and images before the expropriation, and promptly confirming the illegality of forced demolitions. The outcome depends on the evidence and legal application. It is recommended to let lawyers first assess the losses and procedures before deciding on the scope of claims.

Q2: To claim compensation for equipment losses, what evidence do enterprises need to prepare?

The key evidence includes: equipment purchase contracts and invoices, fixed asset ledgers and depreciation records, equipment inventories and on-site images, specialized software and mold lists, financial statements and tax records during the suspension of production and business operations, orders and proof of breach of contract losses, expropriation decisions and appraisal reports, as well as images and notarized documents before and after forced demolition. The evidence should prove two points - the ownership of the equipment and the authenticity of its value, and that the losses were caused by expropriation or illegal forced demolition. The more complete the materials are, the more favorable the determination of relocation fees, replacement value and losses due to suspension of production and business operations will be.

Q3: How much does it cost to hire a lawyer to handle the equipment loss during the demolition of an enterprise's factory building?

The litigation fees are calculated in accordance with the "Measures for the Payment of Litigation Costs", based on the amount of the litigation request (usually the value of the equipment and the claimed losses), and are accumulated in stages and borne by the losing party. Lawyer's fees are related to the complexity of the case and the amount of the claim, and are usually charged on a per-case basis, a percentage of the claim amount, or on an hourly basis. There is no standard pricing, and the specific fees shall be subject to the contract of engagement. Since the amount of the claim in corporate cases is often large, it is recommended to clarify the charging method and the upper limit before entrusting the lawyer. Compare the total amount of equipment and production and business losses that can be recovered with the cost, and if necessary, conduct a professional evaluation of the inventory and appraisal report before negotiating the fees.

Q4: How long does it usually take to protect one's rights against losses of enterprise plant and equipment?

The duration of the process depends on the path taken. For reviewing the evaluation report, the result is generally available within ten days; for reviewing the compensation decision, it takes 60 days; for first-instance litigation, it takes six months (three months for summary proceedings); for confirming the illegality of forced demolition and claiming compensation, the ordinary procedure for first-instance litigation takes six months, and for appeals against first-instance decisions, it generally takes three months; for cases involving the enforcement of compensation, the duration is even longer. Overall, it often takes several months to more than a year from obtaining fixed evidence to obtaining actual compensation. The key deadlines are 60 days for review and six months for litigation. Enterprises should schedule the process immediately after receiving the documents to avoid difficulties in providing evidence after the disposal of equipment.

Q5: The factory building is going to be demolished. What should I do in advance to minimize the loss of the company's equipment?

Here are the four steps recommended: 1. Before the announcement of the expropriation, prepare an inventory of equipment, including purchase receipts, images, and explanations of the equipment's depreciation rate. If necessary, commission a pre-evaluation. 2. Classify the equipment into relocatable and non-relocatable categories, and provide fixed orders, financial records, and tax payment records to prove the losses from production and business suspension. 3. Monitor the process. For cases where the expropriation authority forcibly removes equipment without conducting an evaluation, signing an agreement, or applying for court enforcement, promptly confirm the illegal nature of the actions and seek compensation. 4. Claim rights within the statutory time limits. If necessary, hire a lawyer to retrieve the expropriation documents and prepare evidence. Throughout the entire process, maintain clear records to transform equipment losses from being "unverifiable" to "provable and quantifiable."

The above content is based on the compilation of judicial practices in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Henglu Law Firm for specific cases.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence materials to avoid missing the statutory time limit.Land expropriation and demolition legal services·Attorney He Ningning·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and open adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.