Skip to main content

Urbanization challenges

One of China's big challenges now being debated is how to urbanize. The State Council held a press briefing on March 29 where officials from the National Development and Reform Commission (NDRC) and departments in charge of labor and social security, land, housing, and agriculture discussed urbanization issues.

China has 655 cities, including 122 large ones that have populations of 1 million or more, and 118 with population of 500,000 to 1 million. The rest of the cities have populations under 500,000 and there are over 19,000 small towns.

Officials would like to channel the newly-urbanized population into these small cities and towns, but comments by the director of the NDRC's planning office pointed out that the smaller places are not as adept at absorbing population, and they tend to use up a lot of land.

The NDRC planning office director said there are still four big issues to be dealt with in urbanization. The "quality" of the urban population is not high. Out of an urban population of 622 million, about 167 million are migrants who are still registered as rural people. While these migrants live and work in cities, their status in cities is very uncertain.

There are big regional differences in urbanization. Eastern regions are highly urbanized, but urbanization lags behind in central and western regions. There are vast differences in environmental "carrying capacity." Of the 655 cities, 400 have water supply problems, and the lack of water is serious in 200 of them. Large water diversion and pipeline projects are underway to deal with the regional mismatch of natural resources, energy, and economic development.

The most advanced developed regions--the Bohai Gulf region, Pearl River, and Yangzi River deltas--have a high degree of urbanization, but urbanization is weak in other parts of the country, especially in medium and small cities. Their ability to absorb population is limited. In particular, small towns consume a lot of land when they expand.

Finally, the author criticizes the reliance on land in urban expansion motivated by the eagerness to make money. He offers statistics purporting to show that urban land use expanded at a rate faster than their population growth. He says this is not sustainable.

Comments

Popular posts from this blog

Xi Jinping's Doctoral Thesis

Xi Jinping is the vice president and presumed next president of China but little is known about him. In this post the dimsums blog offers its contribution to the genre of Xi Jinping-ology by conveying Xi's decade-old views on agricultural markets. Ten years ago Xi Jinping wrote a thesis, "Tentative Study of Agricultural Marketization" (中国农村市场化研究) for a Doctor of Law degree at Tsinghua University in Beijing, a top breeding-ground for Chinese officials. The dimsums blogger has spent several hours poring over the 200-plus page tome to see what it reveals about Dr. Xi. The thesis is remarkably close to what China has been doing lately in agricultural policy, suggesting that Xi (or the person who actually wrote the thesis) has a major say in policy or is at least in agreement with what's being done. There is nothing adventurous, controversial (or insightful) in the thesis. It seems to be the work of a wonkish technocrat who is not prone to talk out of turn or wander from...

Divergence in U.S. & Chinese egg prices

High egg prices are a hot topic in the United States. China, in contrast, has a glut of eggs and depressed prices.  The March 14, 2025 USDA Agricultural Marketing Service weekly eggs market overview reported that U.S. egg prices continued declining during the second week of March as the supply situation improved. No significant highly pathogenic avian influenza (HPAI) outbreaks have occurred in March and U.S. egg demand is relatively light. The average U.S. wholesale price for Grade A large white eggs was $4.15 per dozen, down sharply from their February peak.  Until 2021, Chinese and U.S. wholesale egg prices had been roughly equal at about $1-to-$2 per dozen with no trend. U.S. prices fluctuated more than Chinese prices, so the U.S. price was sometimes higher, sometimes lower than the Chinese price after converting them to dollars per dozen.  Chinese prices converted using monthly exchange rate and assuming 0.6 kg per dozen. Sources: USDA and China Ministry of Agricult...

China's 2024 Ag Imports Shrank in Value

China's agricultural imports declined 7.9 percent during 2024 to reach $215 billion, according to data posted on the customs administration website. The 2024 value was lower than each of the 3 preceding years. Agricultural exports were up 4.1 percent to reach $103 billion. Source: Data from China Customs Administration December reports. The top two agricultural import categories by value both declined. Soybeans ($52.75 billion in 2024) fell 10.9 percent, and meat ($23.38 billion) fell 15.1 percent. Cereal grain imports ($15 billion) were down 28 percent and fish & shellfish imports ($18.5 billion) were down 6.2 percent. Edible oils imports ($10.6 billion) were down 17.8 percent. Fruit, rubber, cotton and wool and beverage imports were up for the year. The decline in value of imports partly reflected a decline in prices. Customs reported that the volume of soybean imports for calendar year 2024 reached a record 105 million metric tons, up 5.6 million metric tons from the previou...