New urbanization is a necessary challenge

The new urbanization proposed by the economic work conference of the central government injected new life into China's real estate market. Authorities should divert the housing fever to the market of public services, says an article in 21st Century Business Herald. Excerpts:

The new urbanization is different from the old style, which only opened city gates to rural residents without providing citizen welfare for them. They come to work and live in the city as migrant workers.

China is trying its best to create a fair social security network for all. This is the driving force to transform the original urbanization into a new model.

The newcomers not only need houses, but also education, medical care and jobs. These public services deserve much more capital investment from the government as well as the market.

The large-scale investment on infrastructure construction may bring about robust economic growth in the short term. But it cannot guarantee long-term sustainable development. As China transforms its economic structure and growth model, China has to turn these newcomers into capable consumers. In this sense, the new urbanization is no longer a choice, but a compulsory challenge for China.

China's economic growth may slow down for a while from earlier rapid pace because of the new demands related to financial factors. China should solve the problems while maintaining development.

But this process is necessary, given the fact that decades of years of fast development have accumulated so many environmental, social and system problems in China. The new urbanization provides the best opportunity for China to tackle these problems through reforms.