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Urbanisation in China Urbanisation in China: The impact of the tax-sharing system and the definitions of new strategies Miguel Elosua, François Gipouloux, Sébastien Goulard, Shantong Li, Pengfei Ni To cite this version: Miguel Elosua, François Gipouloux, Sébastien Goulard, Shantong Li, Pengfei Ni. Urbanisation in China: The impact of the tax-sharing system and the definitions of new strategies: UrbaChina working paper no.1 November 2013. 2013. hal-00903218v2 HAL Id: hal-00903218 https://hal.archives-ouvertes.fr/hal-00903218v2 Preprint submitted on 19 Feb 2014 HAL is a multi-disciplinary open access L’archive ouverte pluridisciplinaire HAL, est archive for the deposit and dissemination of sci- destinée au dépôt et à la diffusion de documents entific research documents, whether they are pub- scientifiques de niveau recherche, publiés ou non, lished or not. The documents may come from émanant des établissements d’enseignement et de teaching and research institutions in France or recherche français ou étrangers, des laboratoires abroad, or from public or private research centers. publics ou privés. UrbaChina working paper series No 1 / November 2013 Urbanisation in China: The impact of the tax-sharing system and the definitions of new strategies Authors: ELOSUA, Miguel (CNRS) GIPOULOUX, François (CNRS) GOULARD Sébastien (CNRS) LI Shantong (DRC) NI Pengfei (CASS-IFTE) UrbaChina UrbaChina is a collaborative project funded under the European Commissions “eeth Faeok Programme. Coodiated CN‘“ Faes Natioal Cete fo “ietifi ‘eseah, UaChia aalses Chia's urbanisation trends for the next 40 years and defines possible future scenarios with reference to concepts of sustainability. UrbaChina managed by a consortium of 11 leading Chinese and European research institutions: •Cete Natioal de la ‘ehehe “ietifiue •East Chia Noal Uiesit •Deelopet ‘eseah Cete •Uiesit of Biigha, Services and Enterprise Research Unit •Chiese Aade of Social Sciences, Institute of Finance and Trade Economics •Lodo “hool of Eoois •Chiese Aade of “iees •Institute of Studies for the Integration of Systems •Uiesit of Liso, Instituto de Ciências Sociais •Peoples Uiesit •Ahui aadey of Environmental Science Research Report information Title: Urbanisation in China: The impact of the tax-sharing system and the definitions of new strategies Partners involved: Centre National de la Recherche Scientifique (CNRS), Chinese Academy of Social Sciences, Institute of Finance and Trade Economics (CASS), Development Research Center of the State Council (DRC) Authors: Miguel Elosua, François Gipouloux, Sébastien Goulard, Li Shantong and Ni Pengfei Date of publication: November 2013 研究伴：法国国家科学研究中心 (CNRS)，中国社科学院财政与贸易经济研究所 (IFTE of Cass)， 国院发展研究中心 (DRC) 研究作者：Miguel Elosua，François Gipouloux，Sébastien Goulard，李善同，倪鹏飞 出版日期：二零一三年十一月 The views expressed in this paper are those of the author(s) and do not necessarily reflect the views of the UrbaChina programme. The UrbaChina working paper series is edited by the UMR 8173, Centre Chine Corée Japon http://umr-ccj.ehess.fr/?lang=en UrbaChina website: http://www.urbachina.eu UrbaChina blog: http://urbachina.hypotheses.org/ Recommended citation Elosua, M., Gipouloux, F., Goulard, S., Li, S. & Ni, P. (2013). Urbanisation in China: The impact of the tax- sharing system and the definitions of new strategies (UrbaChina working paper no.1. November 2013). Paris: CNRS. UrbaChina Working papers series NO 1 / November 2013 - By Miguel Elosua1, François Gipouloux2, Sébastien Goulard3, Li Shantong4 and Ni Pengfei5 This working paper examines the evolution of Chinese cities and the challenges they are currently facing. It aims to identify possible patterns of urbanisation in the next forty years. The first part analyses the transformation of Chinese cities as a consequence of the economic policies ipleeted ithi the out. The authos ague that the eooi efo has aeleated Chias urbanisation. Other factors of this massive urbanisation include the improvement of transport infrastructures and the transfoatio of Chias idusties. The reform of the tax system between central and local authorities in 1994 is also examined, and its consequences on urbanisation, and its limitations. Based on this analysis, the second part introduces the possible strategies China may adopt for the development of its cities. The objective of these policies will be mainly to control the path of urbanisation to prevent the emergence of super large city and encourage the creation of city networks. Future urban policies will also need to tackle such issues as rural flight and environment protection. Keywords: urbanisation, China, tax-sharing system, super large cities 摘要 本研究检视中国城镇发展过程及面临的种种问题，并中国未来四十年的城镇化找寻可能的发展模 式。本研究的第一部分中，作者张中国经济改革中国城化，原因在于中国在采用新经济策 略后，使各城带来转型与变革，快了城镇化的效率。本研究检视于1994年实施的中央及地方 政府税改革，及税改革对城镇化之影响及限制。在第二部分中，本研究介绍在未来都发展 中，中国可采用之策略。这些策略的目的要在于控制城镇化的发展方向，避免过度发展特大城 ，而需以城镇网络的形式带动城镇化均衡发展。未来，中国城镇化的政策重点，在于要解决因农 村人口大量往城所的农村空洞化问题，同时也应强环境保育等议题。 关键词：都化，中国，分税制，超特大城 1 Ph.D. candidate at EHESS (School for Advanced Studies in the Social Sciences) and ECUPL (East China University of Political Science and Law) ([email protected]) 2 Director of the China, Korea, Japan Research Centre, (EHESS), UrbaChina Project coordinator ([email protected]) 3 Ph.D. candidate at EHESS ([email protected]) 4 Senior Research Fellow and former Director General of the Department of Development Strategy and Regional Economy of Development Research Center (DRC) of the State Council Peoples ‘epuli of Chia [email protected]) 5 Director of Center for city and competitiveness at the Chinese Academy of Social Sciences ([email protected]) UrbaChina, UMR 8173 Chine Corée Japon, 190-198 avenue de France 75244 Paris cedex 13, France [email protected] 3 UrbaChina Working papers series NO 1 / November 2013 Table of contents Introduction ........................................................................................................................................... 5 I. Evolution of China’s urbanisation ..................................................................................................... 5 II. The 1994 tax-sharing system: background and its impact on urban policies ...................................... 8 a) The tax system before the 1994 reform ........................................................................................ 8 b) Implementation of the tax-sharing system since 1994 ................................................................. 10 III. New strategies adopted by Chinese cities ................................................................................... 11 a) Increasing urbanisation .............................................................................................................. 11 b) Rebalancing urban development ................................................................................................ 12 1. Preventing the expansion of super large cities ......................................................................... 12 2. Planning satellite cities, the case of Shanghai .......................................................................... 13 3. Integrating urban villages .................................................................................................... 14 c) Urbanisation and the environment ............................................................................................. 15 Conclusion ............................................................................................................................................ 15 References ........................................................................................................................................... 17 UrbaChina, UMR 8173 Chine Corée Japon, 190-198 avenue de France 75244 Paris cedex 13, France [email protected] 4 UrbaChina Working papers series NO 1 / November 2013 Introduction I. Evolution of China’s urbanisation Chinese cities have been through many changes Over the past 60 years, China has experienced sie . Chias populatio has eoled fo rapid urban development. In 1949, China's urban rural to urban; for the first time, in 2011, city population was about 40 million, accounting for delles eeeded ual populatios. Chias 7.3% of the total population. The approximate urban strategies have also evolved, consequently. urbanisation rate at the time was 10.64%, but by The economic models adopted by the central 2011 it had reached 51.27%, culminating in an government have had a strong impact on the urban population of approximately 690 million6, deelopet of Chiese ities. Chias ope exceeding the rural population for the first time. policy and subsequent marketisation have led to massive urbanisation. This phenomenon has From 1949 to today, the progress of urbanisation created new opportunities for development, but in China can be divided into three stages: new urban issues have emerged as well. It has During the first stage (1949-1961) the Chinese been noted that Chinese cities have experienced government chose to develop heavy industry as rapid territorial expansion. Today, China is its primary strategy. Consequently, the searching for a new model that would associate urbanisation rate rose from 15.4% in 1957 to economic growth and social stability to 19.4% in 19607. urbanisation. In a first part, this paper will look at the link between the 1994 tax reform and the During the second stage (1961-1978) the expansion of Chinese cities, and will analyse the government worked to decentralise the urban central-local relations
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