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This working paper is one in a series of OECD Working Papers on Regional Development of the
OECD Public Governance and Territorial Development Directorate, conducted under the responsibility of
Marcos Bonturi, Head of the OECD Regional Competitiveness and Governance Division.

China has become the world’s largest urban nation, with over 600 million urban citizens today.
Projections indicate that this level may reach 900 million in 2030. The way this urbanisation process is
managed will have important policy implications for China and beyond. This paper provides an
introduction to urban trends and policies in China. It describes urban growth trends, where and in what
kinds of cities growth is occurring, how China’s cities are governed, and how public policy has influenced
the extent, pace, and spatial distribution of urbanisation. As China continues to integrate with the
globalising economy, its competitiveness will increasingly be driven by the capacities of its metropolitan
regions to improve the productivity of enterprises in ever-widening supply chains. The report concludes
with a description of some of the key policy challenges facing central and local urban governments in this
global context, including: 1) institutional constraints to markets and factor mobility; 2) environmental
challenges; 3) ensuring equity and helping vulnerable groups; and 4) metropolitan governance.

This report is part of a programme of work of the Territorial Development Policy Committee on
Trends in National Urban Policies, conducted by the Urban Development Unit of the OECD Regional
Competitiveness and Governance Division.

The paper has been conceived, co-ordinated and edited by Lamia Kamal-Chaoui, OECD Head of the
Urban Development Unit, and produced by Edward Leman, President, Chreod Group Inc., and Zhang
Rufei, Managing Director (China), Chreod Group Inc. Valuable comments were provided by Olaf Merk
and Xiao Wang of the Urban Development Unit. Erin Byrne edited the language and prepared the working
paper for publication.

Special thanks are given to Mrs Li Shantong, Senior Research Fellow and Former Director-General of
Department of Development Strategy and Regional Economy, Development Research Center of the State
Council, People’s Republic of China, for her valuable comments on the paper and her participation at the
10th Session of the OECD Working Party on Urban Areas, held on 10 June 2008, at the OECD
Headquarters in Paris.

For more information about this paper and on other urban development activities, please contact:
Lamia Kamal-Chaoui (email lamia.kamal-chaoui@oecd.org).