Some other small towns had evolved from commodity distribution centers. Those with supreme economic and geographical locations and convenient transportation and telecommunications gradually grew into industrial or agricultural sideline products distribution centers, thus helping drive the overall development of finance, information, service, transportation, telecommunications, culture and education in these areas. Good examples include Baigou Town in Hebei Province and Xiliu Town in Liaoning Province.

In general, small town development was largely dependent on rural industrial and commercial development. As a result, the areas where industry and commerce developed quickly saw the most rapid development of small towns. In 1978, the number of small towns in east, central and west China accounted for 32.25, 38.75 and 29 percent of the nation's total, respectively. In 1993, the respective percentages changed to 43 percent, 32 percent and 25 percent. We can conclude that development of small towns in the eastern part was faster thanks to its rapid industrial and commercial development.

Is urbanization a must for China's social development or just a government decision?

Urbanization is a must for a country's socioeconomic development. China is no exception. China's urbanization should naturally speed up as its economic development is gaining momentum. Although the Chinese Government encourages urbanization, many policies have in fact hindered the process of its advance, such as the existing hukou and social security systems. If the hukou system remains unchanged, rural residents can hardly settle down in towns and cities. Moreover, the current incomplete social security system also prevents rural people from migrating into towns or cities.

What does urbanization bring to Chinese industry and agriculture?

In terms of industry, the migration of surplus rural laborers to towns and cities provides local industry with an abundant cheap labor force. In 2006, the agricultural population stood at 949 million, accounting for 72.2 percent of the national total. Among them, more than 200 million now take jobs in towns or cities, raising the rate of migrant workers to 60 percent of the country's total workforce.

As for agriculture, those who have moved to the city contracted their land to those who stayed in rural areas. With the scattered land put together and the introduction of intensive farming, the land productivity is raised.

Is urbanization a major way to resolve rural problems?

Judging from the current situation, urbanization performs a positive role in diverting surplus rural labor. Geographically, the eastern coastal areas with the fastest development of the rural economy have witnessed the most rapid development of high-quality towns. Good examples include those in eastern and southern Zhejiang Province, southern Jiangsu Province, the Yangtze River Delta and the Jiaodong Peninsula.

Is the current pace of urbanization satisfactory?

China's urbanization development lags behind industrialization. While major industrial countries saw a gradual decrease in the number of rural laborers during their process of industrialization and urbanization, China found a growing number of farmers in its effort to carry out large-scale industrialization. From 1953 when China started its industrialization