China’s Urbanization and the World Economy
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China’s Urbanization and the World Economy

Fan Zhang

This innovative book places China’s urbanization within a broader global context, including a detailed estimate of China’s total domestic market and its impact on the world economy.
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Chapter 15: China's choices

Fan Zhang


The advantages and disadvantages of China's urbanization have placed China at a crossroads. In the past decade, China's reform has been relatively slow and economic growth has been reduced to a historically low rate. To speed up the reform and growth, China needs to find a breakthrough point. A number of tough decisions have to be made. As I have mentioned before, China is a country with a very strong government and a very weak society. The society has limited means to solve problems itself. In the government bureaucracy, every office is responsible to a higher-level office. The chain of command is from top to bottom. No one cares for the society, which is located at the bottom of the structure, unless the higher-ranked offices give the lower-level office a command to do so. This means that the government, especially the highest-ranked officials, plays a key role in decision-making concerning the benefit of the society, such as in urbanization.

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