China's top development planners plot new direction
Outline of coordinated regional development policies from the NDRC is hailed as aiding urbanisation strategy and resource allocation
The mainland's economic planner sketched out the basis of a new generation of coordinated regional development policies yesterday that could herald a shift away from planning that previously focused on infrastructure expansion.
The initiatives include creating a massive regional hub in the north integrating Beijing, Hebei and Tianjin, deepening state economy reforms in the northeastern rust belt, and pushing forward industrial upgrading of the east and making it a testing area for more market reforms.
Officials at the National Development and Reform Commission said the new policies would help boost the quality of urbanisation and allow resources to be better allocated.
"This marks a major shift in China's urbanisation strategy," said Shen Jianguang, Mizuho Securities' chief economist for Greater China.
"The previous plans built many small cities in an attempt to absorb migrant workers, but ended up with lots of 'ghost cities' without creating enough jobs. Now, the focus should be shifted back to big cities."
Beijing has pledged to move about 100 million people from rural areas to cities by 2020, raising the proportion of urban residents to about 60 per cent of the total population from the current 53.7 per cent.