Debts weigh down new vision for urban push

"Better city, better life" - the slogan used by the Shanghai-hosted World Expo 2010 sparked great controversy on the mainland at the time. Critics said life was far from better in the city after a massive wave of urbanisation had worsened pollution, caused rising bad debts, and lowered the quality of life.

Similar concerns surround the undertaking by Premier Li Keqiang to make urbanisation a national strategy in the hope of creating fresh growth dynamics for the country. Years of fast investment in new roads and bridges have caused debt to pile up at local governments.

Li announced his urbanisation vision last autumn, but he has yet to produce a clear roadmap for getting there. A plan is still being deliberated among government bodies and researchers, and it is understood to have been amended repeatedly in order to balance opinions from all sides and reduce any possible harmful impacts it may have on the economy.

Mindful of past criticisms, Li has stressed that the new urbanisation strategy should not repeat the old model of unrestricted expansion, which damaged the environment and increased financial risks.

Funding, and the way local officials evaluate expansion projects, is at the core of the current debate.

China is being urged to revamp the local fiscal system, broaden channels for local governments to boost revenues, and cut their reliance on land sales to get financing.