Urbanization in China
Urbanization in China has sped up a lot since the country began its reform and opening-up era. By late 2024, official figures put China’s urbanization rate at about 67%. A year later, the United Nations estimated the rate at 83.7% in 2025, noting that the number of people living in cities had already peaked in 2021. In short, more and more Chinese people are living in cities and towns than in the past.
Historically, China’s path to urban living has been different from many other countries. Even large ancient cities had strong rural connections, with many people still involved in farming or private landholding. City sizes were impressive in places like Kaifeng and Hangzhou during past dynasties, but the vast majority of people remained tied to rural life.
Since 1949, China changed its approach to urban growth several times. At first, the new government was cautious, aiming to develop smaller cities and control the rise of huge ones. During the Mao era, urban planning focused on building a socialist citizenry, using work units called danwei that provided housing, jobs, and services. The plan was heavily influenced by the Soviet model, with city layouts designed to place industry on the outskirts and keep green spaces in between.
Urban growth surged in the 1950s and 1960s, especially during the early industrial push of the first Five-Year Plan and the Great Leap Forward. Growth slowed during the Cultural Revolution, when many young people moved from cities to the countryside. After 1978, reforms and foreign investment spurred a new wave of urbanization, creating many jobs and drawing rural residents to cities.
In the 1980s and 1990s, China’s urban rise accelerated. The government broadened the criteria for what counted as a city, and large numbers of rural workers moved to urban areas in search of work. Local governments gained more power and began to raise money through land development, which supported faster urban expansion. The share of urban residents grew rapidly, especially as small and medium-sized cities expanded.
The 2000s saw continued urban growth, with a push to make cities more organized and sustainable. In 2014, China launched the New-Type Urbanization Plan to promote urban-rural integration and to grant urban residency (hukou) to many rural people moving to towns and smaller cities. The plan also aimed to protect farmland and develop ecological and green city projects. Since then, cities have continued to grow through the expansion of urban areas, the development of new towns, and the movement of people from rural regions to urban ones.
Urbanization has boosted China’s economy and wages. Urban workers earn more than rural workers, which has helped raise overall household spending. But it has also created challenges, such as traffic, housing shortages, and environmental pressures. The hukou system—the residence permit that separates urban and rural residents—remains a major policy issue, affecting access to health care, education, and social services for many migrants.
Economically and socially, China’s urbanization has also been linked to regional growth and the rise of urban clusters or megacities. Policy makers continue to push for greener development, better public services, and more equitable access to city benefits for migrants and rural residents alike.
Looking ahead, China is expected to keep urbanizing, with continued emphasis on smart planning, eco-friendly cities, and balanced development between urban and rural areas. Projections vary by source, but many expect urban living to become even more common in the coming decades, shaping China’s economy, environment, and society.
This page was last edited on 3 February 2026, at 01:14 (CET).