urbanization is the road that china must take

As outlined by 3d1k yesterday, the 2014-2020 Urbanisation Plan is a six year plan (yes six!) to boost consumption and rebalance the economy. How you may ask can ramping up FAI again rebalance the economy? Its simple really, once you move these 200 million peasants to the cities they’ll be dazzled by all the newly built shopping malls, and splurge their entire income on consumption, abandoning all desire to save. Job done!

If only we were so clever in the West. Its all explained here:

Urbanization is the road that China must take in its modernization drive, and it serves as a strong engine for sustainable and healthy economic growth, according to the plan released by the Central Committee of the Communist Party of China (CPC) and the State Council, the country’s cabinet.

“Domestic demand is the fundamental impetus for China’s development, and the greatest potential for expanding domestic demand lies in urbanization,” according to the National New-type Urbanization Plan (2014-2020).
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An increasing urbanization ratio will help raise the income of rural residents through employment in cities and unleash the consumption potential, according to the plan.

http://news.xinhuanet.com/english/china/2014-03/16/c_133190495.htm