중국 신형도시화의 경제적 함의

Abstract

In March 2014, Chinese government announced <China’s newurbanization strategy (2014-2020)>. This strategy aims to resolve a fewurban problems. First is to promote urbanization among rural residents. Second is to resolve three rural issues by establishing rural development,increasing agriculture productivity as well as income level of the migrantworkers. Lastly, China can develop its economy by balancing amongurbanization of rural workers, three rural issues resolution, and equaldistribution of public service to increase consumption and domesticdemand. To support this goal, China intends to reform their hukou policy andpromote urbanization of the rural workers. In addition, the governmentwill reduce inequality between the urban and rural hukou benefits andtemporary urban residency permits by eliminating the distinction amongregions and encouraging rural workers to convert their hukou to urbanhukou, which will eventually lead to combining regional hukou policiesinto a singular policy. To encourage urbanization of the rural workers,the government needs to improve the rural land ownership to increasethe value of its property right to enable rural residents to manage theirland by trading or mortgaging their land use rights. The residents willalso be compensated to a substantial amount. Lastly, the strategysuggests that building more infrastructures in different provinces willprovide better connection among local governments. The new urbanizationstrategy emphasizes people aspect of disequilibrium among cities as wellas that of three rural issues. The Chinese government not only expectsthe new strategy to provide overarching solutions for this disequilibrium,but also to reconstruct the path of its economic development. The mostcrucial concern in this strategy is finding a way to fund its realizationand execution. As mentioned above, for the rural residents, the governmenthopes to support their urbanization by empowering the rural residentsthrough the increased value of the land ownership. For the localgovernments, the central government will increase taxation such asmortgage fee, environmental tax, and resource tax, and also allow thelocal governments to issue their own bonds. According to the new urbanization strategy, reforming of hukoupolicy and stimulating urbanization will raise Chinese firms’ wage andpension expense. Nevertheless, in return, expansion of the urbanresidents will result in higher demand in the market, which will increasethe rural residents’ income as well as consumption, which will thenultimately bring higher sales and profit of the firms. Moreover, increasein Chinese domestic demand, infrastructure development, and relatedinvestments will increase business opportunities for foreign investors,especially Koreans, and will also have positive impacts on Koreanexports to China.