Urbanization:An Opportunity and Challenge to China in 2010

China's top advisory body,the Chinese People's Political Consultative Conference, has started its annual session in Beijing. Among many issues to be discussed by participants, urbanization is expected to draw much attention, as it has everything to do with the country's economic and social expansion. Our reporter Liao Jibo has more.

Reporter:

China now has as many as 240 million rural migrant workers. Among them, 150 million have swarmed into big cities to seek jobs. Estimation from Chinese Academy of Social Sciences says the country's urbanization rate will reach 48 percent in 2010 and is expected to exceed the critical 50 percent mark next year.

Zhang Xiaoji, a researcher at the Development Research Center of the State Council, China's cabinet, believes speeding up urbanization will boost domestic demand in the next 30 to 50 years.

"Urbanization creates a large demand. For example, the need of migrant workers for housing is tremendous; their ways of thinking and lifestyle will also change. I think all these changes are positive. Their demand will promote the industrialization of the country; meanwhile, the industrialization will help improve their lives, which is a virtuous circle in the national economy."

For most rural migrant workers, urban living offers the fulfillment of a dream for a better life. They get higher pay in the city and can send the money they earn back to their families in rural areas. Song Linfei, principal of the Jiangsu Provincial Academy of Social Sciences, says this also indicates a great potential for rural areas.

"Some workers will give the money they earn back to their hometowns, which means rural consumption potential can be exploited. In other ways, they can also go back to their hometowns and start their own businesses with the money they earned, which would also boost the local economy."

However, Song Linfei warns that although urbanization is an inevitable outcome of the current economic development, the process has shown signs of "overheating." Many also wonder how these workers, who have made great contributions to the city, can get access to the same public services and social welfare benefits that urban residents enjoy.

"The problems I'm concerned about are the income gap between migrant workers and local citizens and how these migrant workers can live in or rent a comfortable house. For example, as it's hard for them to buy a house in the city, they should be provided with low-rent housing by the government. At least, their basic needs should be met."

Thirty-five-year-old Zhang Jun is a rural migrant worker from East China's Jiangsu Province. He says he often finds it difficult to get settled in the city.

"Everyone loves to live in a city. But sometimes I think living in rural areas is not a bad choice. If I had some knowledge of agriculture, I'd rather go back to my hometown and do some farm work. Life would be easier."

Song Linfei, the researcher from Jiangsu, notes that China's urbanization drive is facing some hidden drawbacks, such as fierce competition for jobs and the difficulty of getting access to public education and healthcare, as well as bubbles in the real estate industry. The government should put the brakes on these trends by carefully scrutinizing and controlling the process.

Liao Jibo, CRI News.