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China's Urbanization to Fuel Domestic Demand of 30 Trillion Yuan by 2030, Official Says

BEIJING, Nov. 15 -- China's urbanization would boost domestic demand by 30 trillion yuan (4.5 trillion U.S. dollars) by 2030, an official from a top think tank said Saturday.

The country's urbanization expansion promises a huge potential in domestic demand, which will assure a stable economic development for China even if exports decline, Han Jun, vice director with the State Council's Development Research Center (SCDRC), said at a forum, adding that the urban migrants' demand for housing is likely to become the largest driving force for China's economic growth in the future.

Additionally, Han noted that the core issue in China's urbanization is to allow farmers-turned-migrant workers to become permanent urban residents.

In the Communist Party of China (CPC) Central Committee's Proposal for Formulating the 12th Five-Year Program for China's Economic and Social Development (2011-2015), which was issued last month, authorities stressed that accelerating urbanization would be an important mission during the next five years.

Data from the SCDRC indicates that China's urbanization rate hit 46 percent by the end of 2009, and will reach 63.6 percent by 2030, with the urban population standing at 930 million.