Urbanization in China and the Coordinated Development Model—The case of Chengdu

China's urbanization faces two greatest difficulties of creating non-farm jobs to “landless farmers” and providing required amenities and social services to urbanites-to-be. In the earlier phase of development, TVE employment had provided important relief to the job pressure. Later, the “Small-city Strategy” that emphasized forming towns and small cities around where rural population resided successfully deterred rural population's entry into large cities. Today, China is implementing a Coordinated Development between the urban and rural sectors, aiming to reach a balanced development between the two sectors by making not only large cities more welcoming to rural migrants but also the small cities, towns, and areas where rural population now reside harder to leave. At the core of the coordination are three concentrations of rural residents, farmland, and firms, intended to help rural residents to settle in large cities, small cities and towns, as well as new residential areas in the countryside, to de-segment land to realize economies of scale, and to gather firms of a same industry in organized industrial areas to gain agglomeration economies and create non-farm jobs. This article examines the trajectory of China's urbanization, analyzes the working mechanism of the Coordinated Development model, and investigates Chengdu's practice of the Coordinated Development, which will help to provide insights into the new developments in China's urbanization.

► After the Small City Strategy, China now implements a Coordinated Development between the urban and rural sectors.
► The core of the Coordination are three concentrations of rural residents, farmland, and firms.
► Through the case of Chengdu, the working mechanism of the Coordinated Development model is analyzed.
► Chengdu has established free mobility of labor and population between the two sectors despite problems to be solved.