opportunity-china.co.uk
December 2014 17
Qi explains that a lower population density in the context
of an increasing rate of urbanisation “means the utilisation of
(urban) land is relatively inefficient. We’re utilisingmore land
than necessary. I think themost important thing is to increase
the populationdensity of the urban area. In other words, we
need to have a higher efficiency in utilising the land, not only
utilising land in rural areas but also better utilisation of land in
urban areas as well.”
ThoughQi calls formore attention to be paid to urban
landutilisation, he also alludes to the fact that discussion has
takenplace regarding the use of rural land amid huge flows of
people to the cities. The government wants China to be self-
sufficient in its food supply but there are obviously implications
of pursuing such a policy when considering themigration of
people from farming areas to the cities.
Qi points out that urbanisation is vital in creating the
demandneeded to spur domestic consumption. Amove away
from the country’s heavy reliance on export-driven economic
growth “will inevitablymean that (China) will put greater
emphasis on domestic consumption. With the urbanisation
process, more peoplemoving into the city will consumemore;
so that will drive economic growth. And that will increase
domestic consumption and the domestic demand for goods
and services.”
Qi believes that the current global economic climate
provides Chinawith the perfect conditions to pursue
urbanisation and alter its economicmodel. “It’s not amatter
of choice (as to) whether or not you have a heavier reliance on
exports at themoment. With the global economic slowdown,
it is amust. You have tomove away from greater reliance
on exports; you have tomove towards a greater reliance on
domestic consumption.
“This, in away, provides a good opportunity to transform the
economic development model and urbanisation is providing a
great opportunity because it providesmore forces for elevating
domestic consumption.”
And as the country tries to shift its economicmodel towards
one of domestic consumption at the same time as trying to
achievewidespread urbanisation, many are askingwhether
therewill be something of an agrarian revolution in farming
methods, to boost efficiency as peoplemove away.
Qi warns that focusing toomuch on the urban aspect of urbanisationwould
damage the process in the long run. “On the one hand, (we need) greater
efficiency in urban areas; the cities. On the other hand, (we need) to increase
the efficiency and improve the quality of living in rural areas. Sowe have to be
very careful. Urbanisation is important for economic development and social
development; there is no question about that. But that does not meanwe’re
trying to get rid of the rural areas and the rural population.”
“There has to be the right balance between the population in rural areas
and urban areas. By nomeans (does this suggest) that the greater the rate of
urbanisation the better. Therefore, improving the efficiency of resource utilisation
in rural areas to improve the quality of living (there) is just as important as
urbanisation if not more.”
It’snot amatter
of choice (as to)
whether or not you
haveaheavier
relianceonexports
at themoment.
“
Youhave to
moveaway from
greater relianceon
exports; youhave
tomove towards
agreater reliance
ondomestic
consumption.
“
