戶口

PERMITS LIMIT THE BENEFITS OF A DRIFT TO BIG

The men anointed to be China's next generation of leaders rarely say much in public. So when a speech given by Li Keqiang – widely assumed to be the successor to premier Wen Jiabao in 2012 – was published in June, it was pored over for any tips about his policy priorities.

Most of what Mr Li had to say was standard rhetoric but the striking aspect of the speech was the emphasis he placed on urbanisation. “Accelerating urbanisation is an important part of economic restructuring,” he said.

China has been urbanising rapidly for much of the past 30 years but it is only recently that the issue has become a priority in Beijing. Policymakers see urbanisation as a potential solution to many of the economic challenges they face – most importantly, as a way of unleashing the hidden potential of Chinese consumers, which they hope will reduce the need for public investment and lower the trade surplus.

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