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Reports on China issued by Samsung Economic Research Institute

[China Review] Main Issues and Outlook for China’s “New Model” Urbanization

[China Review] Main Issues and Outlook for China’s “New Model” Urbanization

Samsung Economic Research Institute Beijing Office

Nov. 20, 2013

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Urbanization, which simply refers to the increase in the urban population, is not a new phenomenon, having rapidly progressed for the past 15 years. But now, China’s urbanization has changed. The new model is “centered on the people” and calls to attention the continued imbalance of urban citizenship and systems in place that discriminate between urbanites and migrants. Plans have been set into motion to reform the main obstacles i.e. the Hukou system, or family registration system and the compensation system for the expropriation of land.

China’s new urbanization model will not only benefits its people but will also present tot opportunities to foreign companies. To tackle the immense investment demand that will arise from the transformation, the endeavor will be turned into new business opportunities in the form of business projects. In order to overcome China’s high entrance barrier, companies will need to establish strategic approaches e.g. using their ties with local firms. Furthermore, companies will have to realistically consider and respond to not only the benefits but also the increased burden of the new urbanization model.

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