If you didn't know that, there is SO MUCH more to discover. It's not just an alternate political system... It's a while different world about which most in the West have no comprehension.
It can vary. Part of land can be rented and part sold. There might be clauses for buying the land outright. Even partially.
On other hand the funding model of local governments in China is entirely different than in west. Main source of revenue has been selling land use rights for development.