People are central to urbanization in China

How to provide jobs for new urban residents is a challenge, said an article in the 21st Century Business Herald (excerpts below).

To stimulate economic growth, many local governments invest huge amounts of money in fixed assets and name the process urbanization.

The State Council corrected this attitude and pointed out recently that a key mission of urbanization is to turn migrant workers into urban residents. The central authority vowed to gradually lift strict control on hukou, residence permits, to promote a free flow from villages to cities.

As a result, local governments must be prepared to grant new urban residents the public services and welfare facilities they deserve.

Attention should be refocused from building houses to creating jobs.

Theoretically, urbanization should be a natural consequence of economic development. If the government interferes with the process too much, it will create trouble for itself in the long run.

Hukou reform represents a rational direction for China's urbanization. But it is still a test for the debt-ridden local governments in China.