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China's Urbanization

Decent Essays

China's Urbanization

With a population of 1.3 billion, China faces unprecedented urbanization challenges. The Chinese government, at various levels, strives to accelerate the urbanization process through city expansion and lowering the threshold for farmers to move into cities. Although urbanization is an inevitable consequence of modern economic development, this process has shown signs of "overheating." Hidden drawbacks, such as intensive pressures on employment and social security, and bubbles in the real estate industry, suggest that the government needs to put the brakes on this trend by carefully scrutinizing and taking steps to control the process.
Urbanization is a historic transformation process by which the means of …show more content…

More than 100 million Mu (1 mu, or mou, = 666 2/3 square meters, so 100 million mu = roughly 67 billion square meters) of arable or cultivated land has been under construction for building industrial parks over the past seven years. This has caused many problems, including traffic jams, water and electricity shortages, lack of energy, lack of schools and environmental pollution. Recently, media in both China and the United States reported a story about the so-called "new residence restriction" (New HU Kou) policy initiated one year ago by Zhengzhou, the capital city of Henan province in China. According to that policy, people from other cities are not allowed to move to Zhengzhou because the city's surge of population has imposed a heavy burden on the city's public services and facilities, such as public transportation, education, social security and medical insurance. The dilemma that Zhouzhong faces symbolizes the challenges of urbanization in China. This situation will become even worse in the next several years.
3. Bubbles in the real estate industry.
The Japanese economy slid into recession at the end of 1980s mainly due to the burst of its real estate bubbles. There were still many half-erected buildings in Tokyo 10 years later. During the Asian economic crisis in the 1990s, much wealth vanished, primarily due to the devaluation of real estate. China learned its lessons in the 1990s from

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