This is true. Its called
Eminent Domain and its legal - and often used. Most of the time, it can be used for something that will benefit "the public" such as a freeway or a school. However, if the "good of the public" is defined as economic development and high paying jobs...well then you end up with a
situation such as they have in China. Generally speaking, most Americans are uncomfortable with this ruling, and state laws are being passed to prevent private sector benefits through Eminent Domain...where there is a tradition of land ownership (in contrast to urban China, where land is leased for long periods of time). In the USA, property owners are compensated for their land at a "fair market value"...which is often contested. In fact, my own home which is 160 years old and has been in my family for six generations is currently threatened with eminent domain. I don't want to move, but I might be forced to because of a planned road widening project.
The primary reason I went to China last year was to see historic Beijing and Shanghai
hutongs before they were entirely destroyed. It is true that whole neighborhoods of two and three story 100-year old buildings are being systematically destroyed to make way for privately funded apartment buildings...with little in the way of compensation for those displaced. China has not had a strong history of property rights...so the local population seemed to me to be resigned to the situation. Still, I was told people prefer one-story traditional homes over the high rises, simply because good Ch'i comes from the earth, and is more plentiful in buildings close to the ground rather than 40 stories above the ground.
I spoke to a Beijing woman who's family had retained a home for five generations near the Drum Tower. They had moved into the house around 1880...but the government had taken portions of her house and property through the years so she only had a few rooms anymore. She was still quite proud of her home - be it much smaller than it had originally been. The historic core of Beijing is attracting attention from international investors who want a traditional Chinese homes in the historic city center. This may begin to turn the historic perspective of property rights in China.
Tragic and hurtful? Yes. Exclusive to China? Certainly not.
Pic 1 is a traditional Beijing hutong...and is threatened with destruction
Pic 2 is the interior of the Beijing house owned by the same family for five generations.
Pic 3 is a hutong in Shanghai destoyed for new construction
Sharing travel pics is fun!