Four Waves of Urbanization in China

3rd Wave (1988-2001)

  • Continued economic reform and industrialization.
  • Land reform in 1988: Changed free land use to paid use, providing capital for urban regeneration and infrastructure.
  • Housing reform in 1988.
  • Growth of the property market.
  • First land auction in Shenzhen in 1987 promoted constitutional changes.

Land Reform

  • Prior, land was state (urban) or collectively (rural) owned; no private ownership.
  • Land allocated free to state/collective enterprises before reform.
  • Reform began in Special Economic Zones (SEZs), allowing land leasing to foreign/joint enterprises.
  • Separation of land use rights from ownership led to a 1988 constitutional amendment.

Housing Reform

  • Pre-reform, housing was part of the welfare system for workers in state/collective enterprises at a nominal price.
  • Privatization and emergence of new ownership enterprises questioned free housing.
  • State Council initiated housing reform in 1988.
  • Real estate became significant for urban economy growth and employment.

Urban Spatial Structure

  • Land use distribution.
  • Social areas (social class distribution).
  • Population density distribution.
  • Models: Concentric Ring Model, Sector Model, Multiple Nuclei Model.
  • Population gradient decreases with distance from city center.

Dual Urban Land Market

  • Leased Land (market-allocated): auction, tender, negotiation; market value, fixed time period.
  • Administratively Allocated Land: allocation to work unit; non-market value, unlimited period.

Impacts of Land Use Reform

  • Increase in land use efficiency.
  • Urban renewal and sprawl.
  • Change of residential and industrial use to commercial use.
  • Cheap rural land (agricultural land loss).
  • Increased speed in restructuring of urban landscape.

4th Wave (2001-)

  • Cities of consumption and services (rising GDP per capita).
  • Focus on service industry development and urbanization.
  • Producer services designated to enhance global competitiveness.
  • Economic transition from agriculture and manufacturing to services.

Producer Service Development in China

  • Financial, real estate, and other high-growth sectors.
  • Predictable growth in producer services.
  • Policy support for finance, logistics, and information industries.
  • Increasing concentration in top cities like Beijing, Shanghai, and Guangzhou.

City Competition and Place Marketing

  • Improvements in city landscape using new iconic architecture.
  • Mega-events such as the Beijing Olympics and Shanghai World Expo for city promotion.
  • Infrastructure improvements: transport, airport, and high-speed rail.

Pseudo-Urbanization

  • Rural surplus labor flows to cities for low-threshold service jobs, forming urban poor communities.
  • Rapid development of information- and knowledge-intensive producer services.
  • Spatial restructuring: industries and housing move out of city centers.
  • Service-led urban economy increases multi-direction traffic.

National Plan on New Urbanization (2014-2020)

  • Aims to avoid Third World urban problems.
  • Focus on developing small cities and towns.
  • Reducing migration pressure on large cities.
  • Equalizing basic public services.
  • Shifting economic functions to smaller cities.
  • Mega-city regions as major spatial carriers.