Globalization and the dominance of large cities in contemporary China

Since the introduction of the economic reforms in late 1978, the Chinese urban system has experienced spectacular growth, accompanied by a rapid rise of urbanization from about 20% to more than 36%. Although restricted by government policy, the development of large cities prevailed in the 1980s, as shown in a previous study (Zhao and Zhang, 1995). This process of predominantly large cities growth appeared to continue in the 1990s, as is shown with further analysis and update on the issue, within the framework of globalization and other economic theories. Based on newly published demographic and economic data, the paper depicts the growth and concentration of population, foreign direct investment and employment availability in the large cities in contemporary China. This paper argues that in this globalization process, in which the fundamental economic rationales of increasing returns, urbanization economies and urbanization agglomeration prevail, large cities will continue to outperform the small cities and so the dominance of large cities will continue.