China’s New Urbanization Strategy Urbanization is one of the major challenges facing China. Of China’s 1.3 billion people, around half still live in rural areas. There has been huge migration from rural areas to cities in recent years, a trend that is likely to continue strongly for some time. The strains that this vast migration puts on China’s cities are enor- mous. This book makes available for the English-speaking reader the results of a large group of research projects undertaken by CDRF, one of China’s leading think tanks, into the details of rural–urban migration, the resulting urban growth and the associated problems. The book goes on to put forward a new strategy, which aims to ensure that China’s urbanization proceeds in an orderly manner and that people and their needs are put at the centre of the strategy. Key parts of the strategy include that ‘city clusters’ should become the main form of urbaniza- tion; that these should be arranged geographically in a pattern of ‘two horizontal lines and three vertical lines’; that industrial and employment structures should highlight regional features and diversity; that urban public services should be more equitably distributed; that there should be new forms of urbanization management and city governance to accelerate urbanization and ensure harmoni- ous social development; and that the whole process should be conducted in an ecological, ‘green’ way. China Development Research Foundation is one of the leading economic think tanks in China, where many of the details of China’s economic reform have been formulated. Its work and publications therefore provide great insights into what the Chinese themselves think about economic reform and how it should develop. Routledge studies on the Chinese economy Series Editor Peter Nolan Sinyi Professor, Judge Business School, Chair, Development Studies, University of Cambridge Founding Series Editors Peter Nolan University of Cambridge and Dong Fureng Beijing University The aim of this series is to publish original, high-quality, research-level work by both new and established scholars in the West and the East, on all aspects of the Chinese economy, including studies of business and economic history. 1 The Growth of Market Relations 7 The Employment Impact of in Post-Reform Rural China China’s World Trade A micro-analysis of peasants, Organisation Accession migrants and peasant A.S. Bhalla and S. Qiu entrepreneurs Hiroshi Sato 8 Catch-Up and Competitiveness in China 2 The Chinese Coal Industry: The case of large fi rms in the oil An Economic History industry Elspeth Thomson Jin Zhang 3 Sustaining China’s Economic 9 Corporate Governance in China Growth in the Twenty-First Jian Chen Century Edited by Shujie Yao and Xiaming 10 The Theory of the Firm and Liu Chinese Enterprise Reform The case of China International 4 China’s Poor Regions Trust and Investment Corporation Rural–urban migration, poverty, Qin Xiao economic reform and urbanisation Mei Zhang 11 Globalisation, Transition and Development in China 5 China’s Large Enterprises and The case of the coal industry the Challenge of Late Huaichuan Rui Industrialization Dylan Sutherland 12 China Along the Yellow River Refl ections on rural society 6 China’s Economic Growth Cao Jinqing, translated by Nicky Yanrui Wu Harman and Huang Ruhua 13 Economic Growth, Income 22 Poverty and Inequality among Distribution and Poverty Chinese Minorities Reduction in Contemporary A.S. Bhalla and Shufang Qiu China Shujie Yao 23 Economic and Social Transformation in China 14 China’s Economic Relations with Challenges and opportunities the West and Japan, 1949–79 Angang Hu Grain, trade and diplomacy Chad J. Mitcham 24 Global Big Business and the Chinese Brewing Industry 15 China’s Industrial Policy and Yuantao Guo the Global Business Revolution The case of the domestic 25 Peasants and Revolution in appliance industry Rural China Ling Liu Rural political change in the North China Plain and the Yangzi Delta, 16 Managers and Mandarins in 1850–1949 Contemporary China Chang Liu The building of an international business alliance 26 The Chinese Banking Industry Jie Tang Lessons from history for today’s challenges 17 The Chinese Model of Modern Yuanyuan Peng Development Edited by Tian Yu Cao 27 Informal Institutions and Rural Development in China 18 Chinese Citizenship Biliang Hu Views from the margins Edited by Vanessa L. Fong and 28 The Political Future Rachel Murphy of Hong Kong Democracy within Communist 19 Unemployment, Inequality and China Poverty in Urban China Kit Poon Edited by Shi Li and Hiroshi Sato 29 China’s Post-Reform Economy – 20 Globalisation, Competition and Achieving Harmony, Sustaining Growth in China Growth Edited by Jian Chen Edited by Richard Sanders and and Shujie Yao Chen Yang 21 The Chinese Communist Party 30 Eliminating Poverty Through in Reform Development in China Edited by Kjeld Erik Brodsgaard China Development Research and Zheng Yongnian Foundation 31 Good Governance in China – A 40 Sustainable Reform and Way Towards Social Harmony Development in Post-Olympic Case studies by China’s rising China leaders Edited by Shujie Yao, Bin Wu, Edited by Wang Mengkui Stephen Morgan and Dylan Sutherland 32 China in the Wake of Asia’s Financial Crisis 41 Constructing a Developmental Edited by Wang Mengkui Social Welfare System for All China Development Research 33 Multinationals, Globalisation Foundation and Indigenous Firms in China Chunhang Liu 42 China’s Road to Peaceful Rise Observations on its cause, basis, 34 Economic Convergence in connotation and prospect Greater China: Zheng Bijian Mainland China, Hong Kong, Macau and Taiwan 43 China as the Workshop Chun Kwok Lei and Shujie Yao of the World An analysis at the national 35 Financial Sector Reform and industry level of China and the International in the international division Integration of China of labor Zhongmin Wu Yuning Gao 36 China in the World Economy 44 China’s Role in Global Zhongmin Wu Economic Recovery Xiaolan Fu 37 China’s Three Decades of Economic Reforms 45 The Political Economy of the Edited by Xiaohui Liu and Chinese Coal Industry Wei Zhang Black gold and blood-stained coal 38 China’s Development Challenges Tim Wright Economic vulnerability and public sector reform 46 Rising China in the Changing Richard Schiere World Economy Edited by Liming Wang 39 China’s Rural Financial System Households’ demand for credit 47 Thirty Years of and recent reforms China’s Reform Yuepeng Zhao Edited by Wang Mengkui 48 China and the Global Financial 49 China’s New Urbanization Crisis Strategy A comparison with Europe China Development Research Edited by Jean-Pierre Cabestan, Foundation Jean-François Di Meglio and Xavier Richet Routledge Studies on the Chinese Economy – Chinese Economists on Economic Reform 1 Chinese Economists on Economic 2 Chinese Economists on Economic Reform – Collected Works of Reform – Collected Works of Xue Muqiao Guo Shuqing Xue Muqiao, edited by China Guo Shuqing, edited by China Development Research Foundation Development Research Foundation China’s New Urbanization Strategy China Development Research Foundation CDRF ROUTLEDGE Routledge Taylor & Francis Group 中国发展研究基金会 LONDON AND NEW YORK China Development Research Foundation First published 2013 by Routledge 2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN Simultaneously published in the USA and Canada by Routledge 711 Third Avenue, New York, NY 10017 Routledge is an imprint of the Taylor & Francis Group, an informa business © 2013 The China Development Research Foundation The right of The China Development Research Foundation to be identi- fi ed as author of this work has been asserted by them in accordance with the Copyright, Designs and Patent Act 1988. All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. Trademark notice : Product or corporate names may be trademarks or registered trademarks, and are used only for identifi cation and explanation without intent to infringe. British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging in Publication Data China’s new urbanization strategy/China Development Research Foundation. p. cm. – (Routledge studies on the Chinese economy; 49) Includes bibliographical references and index. 1. Urbanization–China. 2. City planning–China. 3. Rural-urban migration–China. I. China Development Research Foundation. HT384.C6C537 2013 307.760951–dc23 2012029317 ISBN: 978-0-415-62590-6 (hbk) ISBN: 978-0-203-07493-0 (ebk) Typeset in Times New Roman by Cenveo Publisher Services Contents List of illustrations xi Project team xv Preface I, by Wang Mengkui xvii Preface II, by Chen Yuan xix Acknowledgements, by Lu Mai xxi Introduction 1 1 Urbanization in China: process, trends, and challenges 5 2 Converting rural migrant workers into urban residents in the course of urbanization 33 3 Setting up a spatial confi guration for ‘urbanization’ in China that features ‘two horizontal lines and three vertical lines’ 78 4 Making ‘urban clusters’ the primary form of urbanization in China 108 5 Industrial structure and employment considerations in the course of urbanization 147 6 How to improve the provision of public services in urban areas 175 7 Creating sustainable processes for building and fi nancing