URBANIZATION IN CHINA
• One quarter of world’s 500 largest urban areas in China
• 2050: China’s urban population increase by 300-700 mil.
• 2002 urbanization rate: 36%
• 2050 urbanization rate: 70%
• US (2000): 77% • Japan (2000): 79%
• Germany (2000): 88%
URBAN GROWTH
• Began in 1978 • Decentralization • Open-door, FDI • Agricultural reforms • Land-use rights• Household registration system (hukou )• Work unit (danwei )
TRANSFORMED TO
• Rural-urban migration
• Rapid urban growth
• Agricultural expansion &
intensification
• GDP, 1978-2002: 8-14%
• Increase in income
- vehicles
- housing
- changes in diet
DRIVERS OF URBAN GROWTH
- Foreign and domestic investment
- Policy incentives
- Economic opportunities and
- migration
Increases in disposable income
The below diagram shows the rate of urbanization in china in present also in future
