China’s Post-Reform Urbanization: Trends and Policies

Since the adoption of economic reform policy in 1978, several trends are changing the Chinese society. Chief among these is the rapid transition to an urbanized country. Not only is more than 1/3 the country’s population now living in cities and towns but the remaining is becoming increasingly dependent on cities and towns for its economic survival and livelihood. At the National People’s Congress in March 2001, the central state clearly affirmed the coming reality of China as an urban nation. This is further taken on by making urbanization an important national strategy in the Tenth Five Year Plan. In the 16th National Congress of the Communist Party of China held in November 2002, the Party reiterated its resolution to build an all-around “xiaokong ” – literally a moderately well-off society, of which a higher level of urbanization is a major component. Against this said background, China has entered a period of fast growth in urbanization. Chinese experts predict that by 2050, urban population is likely to reach 1.0-1.1 billion with urbanization level soaring up to over 75 percent and urban sector contributing to over 95 percent of the national economy. Accordingly, more than 60