Investing in China — Capitalizing on Never Before Experienced Urban Migration
There is no question that world class companies will evolve in China and most of these companies will be a direct product of the never before experienced population transition going on in China. This growth is a direct product of the massive migration in China from rural areas to the cities. This population transition creates demand for products and an increased labor force. The world has never experienced the type of population transition that is currently being experienced in China and that will accelerate as Hukou (state control of relocation) is relaxed.
GTEC understands this dynamic and is in China to capitalize on the opportunities that this unprecedented migration represents.
Half of China’s Population Shifting to Urban Location in Ten Years
Rural migration into cities is occurring at such a fast rate that more than half the country’s population will be living in urban areas within the next 10 years, according to a United Nations report released June 25, 2007.
The State of the World Population Report 2007 indicates 18 million Chinese migrate to cities each year, many of them poor young men from the countryside looking for work. As these migrant workers become embedded in urban society their urbanization will begin. Educating the Chinese on matters of health is crucial to China and fundamental to their agreement with the U.N. It has been determined that the best way to educate this massive population regarding fundamental healthcare issues is by billboard. Billboards do not require sophisticated internet connections or even cell phone access.
In understanding the fundamentals involved in the massive urbanization of China, it is important to develop strong social institutions and address issues of health. The train is in motion and it has been determined the right track educating the more than 900 million Chinese that will be living in urban areas by the year 2030 is through a universal information health access program.
China urban planners are attempting to address issues associated with a properly managed and increased labor force in urban areas so that force can serve as a strong engine for economic growth. Planners are addressing a huge assortment of issues associated with this migration including enough housing, welfare provision and other infrastructure to cope with the influx of migrants.
Hukou Being Relaxed
Hou Yan, director general of the Social Development Department at the government’s National Development and Reform Commission, said China is already considering relaxing the ”hukou” household registration system which dictates where Chinese are allowed to live and work. ”It’s already our aim to move surplus labor from the countryside into urban areas. We have been considering eradicating the hukou system for many years. Proposals have been put forward and are now being considered,” she said.
The U.N. report also predicts that climate change will add to the strain put on China’s cities, as many are on the eastern seaboard which could be affected by rising sea-levels in the coming decades. Globally, the U.N. report says that more than half the world’s population will be living in cities by next year. It predicts that by 2030 about 5 billion people will live in urban areas.
Genesis Technology Group is searching out these companies and nurturing them to their full potential.
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