The urbanization process in Mainland China from 1949 to the late 70s was characterized by a stable and low level of growth relative to that of industrialization. This was attained by a controlled allocation system of grain, a strict registration system, a state-owned urban housing program, and an unified recruiting system in most urban industries. Since the early 80s, the indicators of urbanization have changed dramatically compared with those of the previous period.
In this paper, it is argued that this change is mainly due to the change in the official definition of urban and rural populations, the change in the criterion for being classified as an urban area, and the change in the boundaries of some areas, all of which, for the most part, occurred at the same time. The influence of migration from rural to urban areas is found to be small. The flow of the rural population to urban areas is characterized by temporary movements instead of permanent movements. The majority only change their occupation rather than their residence. In addition, only the young or major laborers join the flow.
This paper compares and summarizes the Chinese urban and rural population statistics from various sources. Both the similarities and differences of the statistical systems of Mainland China and Western countries are discussed. The development of rural small-scale industries and, its influence on the process of urbanization is particularly examined. It is concluded that rural small-scale industries play a rather important role in keeping the rural population in the rural areas.
