In 2009, there is an estimated population of 145 million rural-urban migrants in China, which represents 11% of the total population in China (Hu, 2012). Nearly 80% of the total migrants in China are located in the provinces of Guangdong, Zhejiang, Fujian, Jiangsu and the cities of Beijing and Shanghai (Tuñón, 2006). Migration into urban areas has created overcrowding, increased competition for resources and congestion in transportations. The rural areas deserted by the migrants faced new challenges in development such as slow economic growth and shortage of labour force. This would lead to further divergence in the development level between urban and rural places. This would lead to more workers moving into urban areas looking for job opportunities
…show more content…
In urban areas, only a small portion of the migrants has successfully converted their statues as citizens and majority of migrants tends to work for certain period of time before return to their origin provinces. As such, the government has proposed plans to provide supporting funds for the return migrants to start their own business and become self-employed. Financial support such as loans and subsidies is given for local entrepreneurship. The official policy was launched in 1996 and by the end of 2008, 1,113 supported and 6,199 individual enterprises had set up by 16,200 return migrants which accounted for 38.1% and 33.8% of the total enterprises in rural (Xu and Demurger, 2011). It benefited the economic development and created more job opportunities in rural areas as well as relieved population constrain in the overpopulated city …show more content…
In 2010, the Ministry of Commerce aimed to allocate 50 area in the central and western China for enterprises to relocate from the developed eastern regions (Li, 2008). Measures such as loans from State Development Bank, tax incentives, and building supporting facilities is implemented to encourage relocation (Li, 2008). It helped to decentralise worker in the city areas and benefit economic of less developed region. With the effort of Central China Plan, the average GDP of the central provinces has reached 11.6 percent, 0.5 percent more than that of eastern coastal provinces in 2009 (Huang, Ma & Sullivan,
In urban areas, only a small portion of the migrants has successfully converted their statues as citizens and majority of migrants tends to work for certain period of time before return to their origin provinces. As such, the government has proposed plans to provide supporting funds for the return migrants to start their own business and become self-employed. Financial support such as loans and subsidies is given for local entrepreneurship. The official policy was launched in 1996 and by the end of 2008, 1,113 supported and 6,199 individual enterprises had set up by 16,200 return migrants which accounted for 38.1% and 33.8% of the total enterprises in rural (Xu and Demurger, 2011). It benefited the economic development and created more job opportunities in rural areas as well as relieved population constrain in the overpopulated city …show more content…
In 2010, the Ministry of Commerce aimed to allocate 50 area in the central and western China for enterprises to relocate from the developed eastern regions (Li, 2008). Measures such as loans from State Development Bank, tax incentives, and building supporting facilities is implemented to encourage relocation (Li, 2008). It helped to decentralise worker in the city areas and benefit economic of less developed region. With the effort of Central China Plan, the average GDP of the central provinces has reached 11.6 percent, 0.5 percent more than that of eastern coastal provinces in 2009 (Huang, Ma & Sullivan,