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In the summer of 2015, residents of Gongyi in Henan province reported that the area near the reservoir in Ciyun Temple was undergoing deforestation. In addition, over 10 mu (1 mu equals 0.0667 hectares) of arable farmland was being used to build villas and farmsteads.

In December 2015 and February 2016, the Gongyi Bureau of Land Resources conducted two rounds of inquiries and confirmed that 126 square meters of forest and arable land were being illegally occupied. The bureau ordered Li Siping, the man responsible for the illegal occupation, to stop construction and return the land. Additionally, Li had to pay a fine amounting to 378 yuan, as each square meter of occupied land incurred a penalty of 3 yuan.

However, after this punishment was meted out, the construction did not shut down but actually expanded. Villagers quickly claimed that Li had ignored the disciplinary measures because they were so insignificant.

Liu Xiaonan, deputy head of law enforcement at the bureau, explained that, according to existing laws and regulations, the punishment for illegally occupying forest or farmland can be set at up to 10 yuan per square meter. Li's occupation amounted to fewer than 3,335 square meters, which meant it was classified as a minor infringement. Accordingly, his penalty was only 3 yuan per square meter.

Liu also acknowledged that the low standard of punishment is likely a key factor in the frequent occurrence of illegal land occupation. Nevertheless, the penalty must be implemented according to the conditions set by the law, Liu said.