Q. H. Pan, R. F. Xu
2. The Problem of Chinese Urbanization
Lengthways from 1978 to 2011, the urban population of China went from 172 million to 690 million; the ratio
was from 17.9% to 51.3%. Although the level of urbanization was seemingly near to the average of the world,
the conflicts and contradictions were more and more non-neglectable.
1) Low-cost and predatory mode
Low-cost way of urbanization, which accelerated the process of population migration, left some problems.
The worst one may be urbanization lagged behind industrialization, neglecting the importance of population ag-
glomeration except economy agglomeration. Take the rate (urbanization ratio:industrialization ratio) in 2011 for
example, it was 1.1 (51.3%:46.8%) compared with 1.95, the average level of the world.
2) For rural residents, the real right of land performs practically no function
This problem included that farmer’s land rights was impaired in the past 30 years; the local government
finance relied on auctioning lands; the efficiency of land utilization was low; the framework of land law was
imperfect.
3) The Urban and rural household registration system
In China, Urban population refers to all people residing in cities and towns including 160 million rural mi-
grant workers (or peasant-workers). However because of the hinder of registration system these workers were
not treated equal to other citizens.
4) The imbalance and inharmony of urbanization development
Compared with the west, the east areas were overburdened by rapid urbanization, causing resources of econ-
omy and society mismatch. As population was over-intensive, metropolis like Beijing, Shanghai and Guangzhou
had a lot of troubles such as water, air, education, healthcare and so forth.
On the other hand, the similar structure of regional economy and the convergence of industrial structure
bringing excessive competition lead to lower utility.
5) High level of energy dependence
In future decades, the need for urbanization of iron, copper, chromium, sylvite, oil, natural gas and so on will
be rigid, the bulk mineral imports will ascend consistently. Thus the degree of foreign-trade dependence will al-
so become higher.
3. The Introduction of New-Type Urbanization
3.1. The Policy Background
In the Central Economic Working Conference Dec. 16th 2012, the conclusion of discussion indicates that urba-
nization is the historic mission of Chinese modernization development and also the way to expand domestic
demand, so it’s vital and urgent to make urbanization develop in a healthy and ordered way. Meanwhile, the Na-
tional Planning to Promote the Healthy Development of Urbanization (2011-2020), which is the master planning
outline of national urbanization, has already finished and will be published soon.
3.2. The Connotation and Function of New-Type Urbanization
1) The connotation
Until now, there are no standard definitions of new-type urbanization. Generally speaking, the new-type ur-
banization contains four aspects: a) coordinated with the development of industrialization and agricultural mod-
ernization; b) adapted to population, economy, resources and environment; c) having equal opportunities for all
kinds of cities (Large, medium or small) and towns to blossom; and d) with population aggregation, citizeniza-
tion and the coordinated development of public service. All in all, the characteristics of new-type urbanization
are urban-rural overall development, urban-rural integration, production-city interaction, economization and in-
tensification, ecological and livable, harmonious progress.
2) The function
Firstly, in the macro level of nation, the new-type urbanization is the engine of economic growth.
International experience shows that domestic demand is the endogenous power of economic growth, espe-
cially for large countries. It’s essential to convert the growth pattern from relying on investment to consumption.
But there should be a stage of transition, which means investment and consumption have the same privilege to
boost growth in this time. The new-type urbanization will be the key to this kind of transition.