BEIJING, Dec. 10 (Xinhua) -- Urbanization will play a significant role in China's efforts to boost domestic demand, which economists believe should be a major driving force for the sustainable development of Chinese economy.
This was a signal sent from the three-day central economic work conference that was held from weekend to Monday to set tune for the nation's economic growth and social development in the coming year.
Policy makers attending the annual conference decided that to boost urbanization, it would be a major task to allow more eligible rural residents to find jobs and reside in urban areas and to lift control on permanent residence in small and mid-sized cities and towns.
China's permanent residence registration system was initiated in the 1950s and has since categorized Chinese citizens into urbanites and non-urbanites.
"If I'm allowed to be treated as a permanent resident in Zhili,I will buy a second-hand, 80-sq m house here and move my parents and child to the town," said Luo Shaohui, who has worked in Zhili town of Huzhou city, eastern China's Zhejiang province, for eight years.
Though with an academic background of only junior middle school, Luo now has been promoted to workshop head from apprenticeship through eight years of hard work. His monthly income has increased from 600 yuan (87.98 U.S. dollars) to 3,000 yuan.
Luo voiced heartfelt wishes of many migrant rural workers.
"Though we are rural migrant workers, my wife and I now earn a combined monthly income of more than 4,000 yuan. It will be no problem for us to buy a 200,000-yuan apartment in Zhili," Luo said.
Luo added that his son left in his hometown in eastern China's Jiangxi province was now eight years old and had been looked after by the grandparents.
If we resided in Zhili permanently, we can provide for the aged parents and our son would get a better education, Luo considered.
¡¡¡¡ACCELERATING URBANIZATION, CONDUCIVE TO BOOSTING DOMESTIC DEMAND
According to Yao Jingyuan, chief economist with the National Bureau of Statistics, the Chinese economy has since long relied onexport, or external demand, and investment. The reliance exposes the country to high risks on overseas markets. It was imperative for domestic demand, especially from consumers, to be expanded and made another strong driving force for the national economy, Yao noted.
"Now consumption accounts for 35 percent of China's GDP, and the proportion is rather low," said Feng Fei, head of industrial economy department of the Development Research Center of the State Council, China's cabinet.
Feng believed that to accelerate urbanization through lifting restriction on permanent residence in small and mid-sized cities and towns would play a major role in expanding residents' consumption, driving up investment in urban areas and improving people's livelihood.
"Urbanization is an extremely important driving force for the sustainable development of Chinese economy," Feng said, adding that a one-percent increase in the urbanization level meant more than 10 million farmers became urbanites.
The group, after they could enjoy the same public services and social welfare as the urbanites did, would have many of their current worries dispelled and their livelihood changed significantly, and the process would help unleash huge potentials in consumption, said Fan Jianping, chief economist with another government think-tank, the State Information Center.
According to Wei Fengchun, a senior analyst with China Securities Co., Ltd., the urbanization drive will help add nearly 2.5 trillion yuan, or eight percent, to the total annual output value of China's service industry, which stands at 32 trillion yuan at present.
