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Urbanization to unleash China's growth potential

Xinhua | Updated: 2017-01-03 09:00
BEIJING -?China's urbanization drive will boost domestic consumption and investment in the future, analysts have said.

The country aims to add 100 million urban residents during 2016 to 2020, while enabling 100 million rural residents to live in towns and cities in central and western regions.

Population concentration together with improvement in livelihoods will expand demands in consumer services, said Chi Fulin, director of the China Institute for Reform and Development.

It is estimated that if migrant workers spend as much as urban residents, the country's consumption will swell by over 1 trillion yuan.

Besides, every percentage of urbanization is predicted to translate into 3.7 percent investment growth. When 400 million people bid adieu to villages in the next 10 to 20 years, they will directly stimulate investment demands of 40 trillion yuan.

In 2015, permanent urban residents account for 56.1 percent of the country's population, a rate expected to be hit 60 percent by 2020.

Such urbanization promises opportunities for China's development, said Li Yang, academician with Chinese Academy of Social Sciences.


China's vast rural areas are huge markets for living environment improvement, garbage disposal and infrastructure upgrading, Li said.
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