China's Premier: Don't Sacrifice Rural Interests in Push for Urbanization - Wall Street Journal

By AARON BACK BEIJING—Chinese Premier Wen Jiabao warned that the interests of rural residents must not be sacrificed in pursuing urbanization, in a sign of potential tension between China's departing and incoming leaders. Xinhua/Zuma Press A migrant worker's family reunites at the Fuyang train station Tuesday. Mr. Wen is set to be replaced in March by Vice Premier Li Keqiang, who in recent public comments has stressed the importance of urbanization as a future growth driver. "Urbanization is gradually achieved through the process of economic and social development," Mr. Wen said during a visit Tuesday to the National Development and Reform Commission, the country's top economic-planning agency. His remarks were posted Wednesday in a statement on the central government's website. In pursuing urbanization, it is necessary "to consistently apply scientific principles, to steadily push forward targeted policies, and to coordinate with rural modernization and the establishment of a new countryside," Mr. Wen said. "We cannot sacrifice rural industry and the interests of rural residents," the Chinese premier added. Mr. Wen's comments suggest that he wishes to preserve his legacy of stressing rural issues amid the current focus on promoting urbanization. He and Chinese President Hu Jintao began their administration 10 years ago with promises to narrow China's income gap and to boost the fortunes of rural residents under the slogan of building a "new socialist countryside." Although income inequality in China remains at daunting levels, analysts generally credit Mr. Hu and Mr. Wen with helping alleviate poverty in rural areas through measures such as abolishing agricultural income taxes paid by farmers. The urbanization process will be key to continuing growth in China and to rebalancing the country's economy toward domestic demand, economists say, as rural residents move to higher-paying urban jobs and begin spending more on upgraded lifestyles. But promoting true urbanization in China will require deep reforms, analysts say. That will include changes to the country's household-registration or hukou system, which bars rural residents from gaining full legitimate status as urban residents. Write to Aaron Back at aaron.back@wsj.com A version of this article appeared January 31, 2013, on page A11 in the U.S. edition of The Wall Street Journal, with the headline: China's Premier: Keep Rural Interests in Mind. via Technology - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNFfGvORiKYhrHTaeA0C2jm5SGAizg&url=http://online.wsj.com/article/SB10001424127887324610504578273702222873798.html

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