Market Integration in China

Over the last three decades,
China's product, labor, and capital markets have become
gradually more integrated within its borders, although
integration has been significantly slower for capital
markets. There remains a significant urban-rural divide, and
Chinese cities tend to be under-sized by international
standards. China has also integrated globally, initially
through the Special Economic Zones on the coast as launching
grounds to connect with world markets, and subsequently
through the accession to the World Trade Organization. For
future policy considerations, this paper argues that its
economic production needs to be spatially concentrated, and
its social services need to be spread out to the interior to
ensure harmonious development and domestic integration
(through inclusive rural-urban transformations and effective
territorial development).