100 Million Chinese to Become New 'Urbanites'
Winona Cueva | | Mar 18, 2014 07:23 AM EDT |
More than 100 million Chinese will become official city residents in the next six years under the government's urbanization plan that was unveiled Sunday.
The urbanization plan is part of a broad reform program aimed at driving China's economy toward a growth path that is fueled by consumption rather than by new investments.
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The state leadership had emphasized a growth direction that is "people-centered" when it concluded the annual Twin Sessions of the legislature and political advisory body last week.
Urbanizing 60 percent of the country's population will increase domestic consumption, an economic driver that is in place in developed countries where 80 percent of the total population live in cities.
By comparison, only 53 percent of China's 1.4 billion people are city residents.
The new city dwellers, duly registered with an urban 'hukou' status, will have access to expanded social benefits such as healthcare and nine years of free education for their children.
The rural migrant workers will also be given free employment training to help them land jobs in the cities.
Overall, the improved living conditions of these neo-urbanites would give them better purchasing power, thus helping expand the economy.
"Domestic demand is the fundamental impetus for China's development, and the greatest potential for expanding domestic demand lies in urbanization," according to the plan.
Prior to the urban reform plan, China has geographically stratified its workforce by restricting rural people from registering as city workers even if they have long migrated to cities for work.
The result was that many rural migrants who work in cities do not enjoy the social benefits available to registered city residents.
With the new urbanization drive, China will help its rural migrants settle in their urban destinations by fully eliminating the registration restrictions in small cities and gradually easing restrictions in medium-sized cities.
The 2014-2020 urbanization plan includes the construction of more housing projects, railways and other public facilities in cities to accommodate the new urban residents.
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