The new urbanization policy in China: Which way forward?

China's urbanization process has followed a unique course and transformed the country in a very short period of time. Yet problems have arisen and the New Urbanization Policy 2014-2020 is designed to overcome many of these. This policy note outlines the objectives of the new policy, including a partial relaxation of the strict urban residency (hukou) rules, the move toward people-oriented urbanization and the expected changes that will occur in rural areas, particularly with respect to rural land. The paper concludes with a number of questions that do not appear to have been satisfactorily answered by the new policy. Will the differentiated hukou system be effective? Will the rapid urbanization of rural land be curbed? Will the new urbanization make China's cities more or less efficient? What are the plans to reform local government finance? How will the problem of loss of rural collective lands be addressed? The new policy is viewed as an important first step, but unanswered questions remain. (C) 2015 Elsevier Ltd. All rights reserved.