An executive meeting of the State Council, China's cabinet, Wednesday gave in-principle approval to a draft regulation on land acquisition and compensation which is expected to better protect homeowners.

The meeting was presided over by Premier Wen Jiabao.

The draft says compensation paid to homeowners should not be lower than the sum of the market price of the property, the cost of moving and temporary accommodation, and losses caused by suspension of business.

Projects of house acquisition on state-owned land should be included in the annual economic and social development plans of relevant governments, the draft says.

Governments should expand public participation in the approval of house acquisition plans, the draft says.

If a majority of people oppose the plan, they should call for a public hearing and modify the plans, the draft says.

Before making decisions, relevant agencies should assess risks to social stability, according to the draft.

House developers are prohibited from being involved in removal projects, the draft says.

Agencies which are responsible for acquisition and compensation should not be profit-oriented, the draft adds.

The draft regulation cancels the administrative enforcement of demolition.