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Massive urbanization is the most visible manifestation of the Chinese economic miracle. However the traditional competitiveness factors are close to their limits. Chinese government has relied on urbanization as the motor of a new model of economic growth, which to be based on rising purchasing power on the local market. To maintain the same level of the migrants flow from rural to urban areas the government has gone as far as almost completely abolish many of the restrictions of registration system. Notably, the division between urban and rural residence has gone, giving free access to social services to millions of migrants via residence permit mechanism. Government eased and unified criteria for getting registered at new place of residence.
urbanization, China, reforms, inequality, cities
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