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Domestic migration and urbanization
to spur consumption
The census also illuminated domestic Where the opportunity lies
migratory shifts within China. The eastern
region’s population share increased by 2.15 China’s domestic migratory trends reflect
percentage points to 39.93 percent of the total, regional imbalances in the economy that
while the western region increased its share businesses should be aware of. The country’s
slightly by 0.22 points. southern and eastern regions have been
successful in developing technology, services,
The southern province of Guangdong’s and knowledge-based sectors in the economy,
population increased by 22 million, or 21 while the northeast has slowed due to
percent, over the last decade, further extending declining demand for heavy industry.
its lead as the country’s most populous province
at 126 million. Eastern China’s Zhejiang The trends, however, have caused China to
province also grew rapidly, with an 18.6 percent offer key tax and investment incentives for
population increase since the last census. capital to move inland and into the western
regions, which in turn is expected to attract
In contrast, the northeast’s share of the talent movement.
population shrank by 1.2 points to 6.98 percent
– a significant portion of its total – while the Moreover, more provinces and cities are
central region’s share declined by 0.79 points relaxing hukou eligibility requirements
to 25.83 percent. The northeastern province besides the fact that hukou reform is part of
of Heilongjiang had the country’s steepest the national agenda; this mean that over the
population decline, as the population in 2020 medium-term, the regional imbalances could
was 17 percent lower than in 2010, losing over potentially be narrowed.
6 million residents. Its neighbor, Jilin, also
experienced substantial outward migration, Overall, China’s multi-decade long
with a population decline of 12 percent. urbanization drive continued to speed ahead,
as the country’s urbanization rate grew by 14.21
points to 63.89 percent, leaving the share of
the rural population at just 36.11 percent. That
means that China’s cities added an additional
230 million residents over the last 10 years,
raising the total to 902 million urban residents.
More workers in urban areas translate to higher
productivity and greater consumption levels,
which will be necessary for the government’s
“dual circulation” economic strategy to succeed.
If China’s urbanization drive is to continue at
a rapid pace, authorities will need to further
loosen hukou regulations, which restrict labor
movement across the country.
SOUTH CHINA BUSINESS JOURNAL 6
to spur consumption
The census also illuminated domestic Where the opportunity lies
migratory shifts within China. The eastern
region’s population share increased by 2.15 China’s domestic migratory trends reflect
percentage points to 39.93 percent of the total, regional imbalances in the economy that
while the western region increased its share businesses should be aware of. The country’s
slightly by 0.22 points. southern and eastern regions have been
successful in developing technology, services,
The southern province of Guangdong’s and knowledge-based sectors in the economy,
population increased by 22 million, or 21 while the northeast has slowed due to
percent, over the last decade, further extending declining demand for heavy industry.
its lead as the country’s most populous province
at 126 million. Eastern China’s Zhejiang The trends, however, have caused China to
province also grew rapidly, with an 18.6 percent offer key tax and investment incentives for
population increase since the last census. capital to move inland and into the western
regions, which in turn is expected to attract
In contrast, the northeast’s share of the talent movement.
population shrank by 1.2 points to 6.98 percent
– a significant portion of its total – while the Moreover, more provinces and cities are
central region’s share declined by 0.79 points relaxing hukou eligibility requirements
to 25.83 percent. The northeastern province besides the fact that hukou reform is part of
of Heilongjiang had the country’s steepest the national agenda; this mean that over the
population decline, as the population in 2020 medium-term, the regional imbalances could
was 17 percent lower than in 2010, losing over potentially be narrowed.
6 million residents. Its neighbor, Jilin, also
experienced substantial outward migration, Overall, China’s multi-decade long
with a population decline of 12 percent. urbanization drive continued to speed ahead,
as the country’s urbanization rate grew by 14.21
points to 63.89 percent, leaving the share of
the rural population at just 36.11 percent. That
means that China’s cities added an additional
230 million residents over the last 10 years,
raising the total to 902 million urban residents.
More workers in urban areas translate to higher
productivity and greater consumption levels,
which will be necessary for the government’s
“dual circulation” economic strategy to succeed.
If China’s urbanization drive is to continue at
a rapid pace, authorities will need to further
loosen hukou regulations, which restrict labor
movement across the country.
SOUTH CHINA BUSINESS JOURNAL 6
