Within the capital city of China, the campaign for combating what Beijing calls “urban diseases” has translated into the destruction of small shops and businesses, according to a global media report.
Such businesses make up 35 per cent of the economy of Beijing, contributing only 7.5 per cent of its tax revenues, the report added quoting 2011 figures, the most recently available ones.
Capping the city’s population, shrinking its footprint, dismantling of the small businesses and unsettling migrants that throng its bustling streets are the major features of the campaign, the report suggest.
A World Bank paper, titled china 2030 that was endorsed by China’s Premier Li Keqiang, posits urbanisation as the engine that will transform the economy away from low-end manufacturing, according to the report.
It, as the report indicates, means China still encourages officially the integration into cities of hundreds of millions of people still residing in the countryside.
Yet again, the new urban migrants with a rural hukou, or household registration, are expected to settle in provincial cities or county seats, where a multiyear property bubble has left rows of empty apartment blocks, the report added.
The report, quoting a city government notice, said the Chinese capital will cap its population at 23m “long-term residents” by 2020 “and keep it at that level for the long term”.
In the past two years, Beijing has torn down wholesale markets, making it harder for children to attend school with a view to forcing force out migrant families, it added.
Under the latest move, car-sharing services to local drivers have been restricted and this is decimating the pool of drivers for Uber partner Didi Chuxing, the report stated.