Eminent domain is a commonly used tool in most nations in the world, you know.
I doubt the Chinese government is likewise bound.
The difference is that the vast majority of land isn't owned in China but leased by the Central government, so the compensation for the land itself may be very low. Structures built upon it are generally compensated properly, though there surely is sometimes corruption.
Rural land is even less compensated, sometimes you may be assigned new land and compensated for the structure only.