Urbanization in China may face hurdles under hukou system

01/2/2013 | Al-Jazeera

The growth of an aspiring middle class in Suzhou Industrial Park in China is seen as a model for urbanization -- expected to help the country transition to a more consumption-based economy. However, some suggest a wider transformation may be hampered under the country's hukou system, which requires migrants to pay for basic services such as education. "If China wants to create a truly powerful consuming middle class and succeed with urbanization as a key driver to growth, the hukou system has to go and the fiscal system must be reformed," said University of Washington geography professor Kam Wing Chan.

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