Urbanization in China:Population and Land

Di Chengfeng

Beijing Normal University

2013.6.14-15 Budapest

Urbanization…… the physical growth of urban areas as a result of rural

migration and even suburban concentration into citiesThe urbanization of population

increase of urban populationproportion of urban population in total population

The urbanization of landexpansion of urban land

Overview of China’s Urbanization

Rate of Urbanization in China (1949-2010) (%)

Before economic reform(1949-1979) : Crawling under 20% After economic reform(since 1980): Running by small steps, up to 49.70% in

2010 and 51.3% in 2011

0

10

20

30

40

50

60

Year

Overview of China’s Urbanization

Overview of China’s Urbanization

Process of China’s Urbanization

1950-1978: Counter-urbanization

Major factorsDevelopment strategy of industrialization with priority of

heavy-industry with limited resources under system of planned economy

Institutional arrangements on Chinese urban-rural segregation including the household registration (Hukou) system

Political arrangement of sending urban youth to countryside to do farm works

Process of China’s Urbanization

1979-2002: Urbanization based on industrialization in rural area and development of small cities and towns

Major factorsEconomic reform to market economyRelease of rural surplus laborPolicy of giving priority to development of small cities and

towns with development of medium and big cities as supplement

Development of rural enterprisesEmerging of small cities and towns (See the table)

Process of China’s Urbanization

Year Amount Year Amount

1981 2678 1993 15806

1982 2664 1994 16702

1983 2968 1995 17532

1984 7186 1996 18171

1985 9140 1997 18925

1986 10718 1998 19216

1987 11103 1999 19756

1988 11481 2000 20312

1989 11873 2001 20374

1990 12084 2002 20601

1991 12455 2003 20226

1992 14539 2004 19883

2005 19522

Quantity of small cities and towns in China since 1981

Process of China’s Urbanization

Since 2002: Transforming to urbanization based on coordinated development of towns and cities of various scale

Major factorsIncreased demand for cheap rural labors due to deepening of

economic reform and industrializationLoosening of the household registration system in some citiesNeed for scale of economy and market resulting from

evolving of industrialization

Imbalance between urbanization of land and urbanization of population

Imbalance between urbanization of population and farmers’ citizenization

Some Problems of China’s Urbanization

Statistics from different sourcesThe build-up areas in cities has increased by 7.2%, while the

population in the areas increased only by 4% during 1999-2007. - The National Development and Reform Commission

The build-up areas above prefecture level expanded 70.1% but population absorbed in the areas increased only by 30% from 2001 to 2007. - China Urban Development Report 2009

More data - China Statistical Yearbook & China Statistical Yearbook of Urban Construction

Imbalance between land and population urbanization

Change of built-up area and population density in Chinese cities since the 1980s

YearBuild-up area of

city(km2)

Population in cities and towns

(million)

urbanization Rate (%)

Population density in build-up area(persons/km2)

1981 7438 199.70 20.12 26849

1985 9386 250.94 23.71 26736

1990 12856 301.91 26.41 23484

1995 19264 351.74 29.04 18259

2000 22439 459.06 36.22 20458

2005 32521 562.12 42.99 17285

2006 33660 577.06 43.90 17144

2007 35470 593.79 44.94 16741

2008 36295 606.67 45.68 16715Source: China Statistical Yearbook ， China Statistical Yearbook of Urban Construction

Problem implied in the statistics Low efficiency of urban construction land utilization

Status of land endowment Arable land per capita ＜ 0.1 hectare

＜ ½ of the world average ＜ ¼ of the developed countriesResult of the imbalance of urbanization

Per capita urban land available ＞ 120 m2

＞ 82.4 m2 for developed countries averagely ＞ 83.3 m2 for developing countries

averagely

Imbalance between land and population urbanization

Measuring urban populationPermanent urban residents (with hukou), andRural population living in cities or towns over 6 months but

without identity of citizenship (urban hukou) – the floating population

Gap between urban population and citizens300 million of nonresident migrants in cities and townsReal rate of urbanization is about 35% in 2010 after deducting

the 300 million (compared with 49.7% of the rate of registered urban population in 2010) -- peri-urbanization

Imbalance between urbanization of population and rural-urban migrants’ citizenization

Migrant rural workers is the largest challenge to urbanizationLess access to sufficient housing, health services within social security

and compulsory education for their children because of their nonresidential identity

Separation with their family, esp. children

Age of Migrant Rural Worker in 2007

Imbalance between urbanization of population and rural-urban migrants’ citizenization

Age Population in total migrant rural workers

＜ 30 52.6%

30-40 29.5%

＞ 40 17.9%

Slow population urbanization resulting mainly from Household Registration System

Fast land urbanization resulting mainly from the Land Supply SystemLand acquisition and land leasing – right to useLocal government’s tax revenue

Institutional reasons for the imbalances

YearArea of land

leasing(hm2)

Revenue of land leasing

(billion Yuan )

National financial income

(billion Yuan)

Proportion of land leasing revenue to financial income

(%)1993 57338 40.53 434.9 9.32

1994 49432 35.92 521.8 6.88

2000 161190 62.50 1339.5 4.67

2001 90394 129.59 1637.1 7.92

2002 124230 241.68 1891.4 12.78

2005 165586 218.40 3164.9 6.90

2007 234961 454.14 5132.2 8.85

Institutional reasons for the imbalancesLand leasing and revenue in China since the 1990s

Source: China Statistical Yearbook, China Statistical Yearbook of Urban Construction

Some conclusions

Extensive urbanization focusing on expanding urban area is unsustainable, while intensive urbanization focusing on improving land utilization is necessary

Reform of house registration system will be crucial for effective population urbanization

Institutional reform of farmland transfer should benefit farmers with more choice and compensation