China's Smaller Cities Boom as Economy Grows

China's urbanisation is unique because its population, and economy, are highly dispersed across an ever-expanding set of cities

Phillip Zhong 26 July, 2018 | 12:43PM

Nanning, China

When people think of China’s cities, the mega-metropolises of Beijing and Shanghai come to mind. But small and medium sized Chinese cities are booming, largely due to central government policy and investments in infrastructure and transport.

The Chinese Government is actively trying to control the population of “megacities” with more than five million inhabitants and encourage rural workers to join the urban workforce. This trend in urbanisation has implications for how China’s economy grows and the investment case for the country in the coming years.

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About Author

Phillip Zhong  is Senior Equity Analyst, Morningstar Asia

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