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Wednesday
Mar072012

China's urbanization unlikely to lead to fast growth of middle class

The number of people living in China's cities, which last year for the first time surpassed 50 percent of the national population, is considered a boon for the consumer goods market. That is based on the assumption that there will be more families with more disposable income when poor farmers from China's countryside move to cities and become middle-class industrial and office workers.

But the assumption overlooks a policy from the era of Chinese leader Mao Zedong that restricts the upward mobility of its rural citizens, says a University of Washington geographer.

This calls into question China's strength in the global market and its ability to overtake the United States as a global superpower, according to Kam Wing Chan, a UW professor of geography.

His findings are published in the current issue of the journal Eurasian Geography and Economics.

Read More:

http://www.sinodaily.com/reports/China_urbanization_unlikely_to_lead_to_fast_growth_of_middle_class_999.html