McKinsey's Pitch for a More Compact Urban China

The McKinsey Global Institute has just published a major report outlining four potential scenarios for urbanization in China.The main thrust of the report is that China needs to focus less on growing its cities and more on making them efficient and productive. Given the massive levels of capital investment Chinese cities have seen over the last 20 years, it makes sense that the country's urban planners need to find ways to squeeze more capacity out of these systems. After all, as McKinsey projects, another 350 million people will need to be accommodated, some 250 million of them as rootless rural migrants.

2 minute read

July 24, 2008, 8:43 AM PDT

By Anthony Townsend


The McKinsey Global Institute has just published a major report outlining four potential scenarios for urbanization in China.

The main thrust of the report is that China needs to focus less on growing its cities and more on making them efficient and productive. Given the massive levels of capital investment Chinese cities have seen over the last 20 years, it makes sense that the country's urban planners need to find ways to squeeze more capacity out of these systems. After all, as McKinsey projects, another 350 million people will need to be accommodated, some 250 million of them as rootless rural migrants.

While McKinsey forecasts that the most likely trajectory, given no intervention, is a dispersal of urban population growth to a much larger array of mid-sized cities (which is China means settlements of 1.5-5 million people!). The report argues that while the central government can't directly control urban growth, it can utilize infrastructure spending and political muscle to concentrate growth in a handful of larger cities, reducing land and energy consumption and concentrating domestic talent and foreign investment in highly productive clusters.

Along with the full report is an interactive feature that lets you play out some of the projections. Watching the entire eastern seaboard of China turn into a more-or-less continuous sprawl of urbanization is fascinating. I wonder how Europeans might have felt in the 1960s watching the same thing for North America (they had to make do with the static maps of Jean Gottman's Megalopolis).

A summary of the report is available in the McKinsey Quarterly.

While we're on it, anyone wishing to understand the last 20 years of Chinese urbanization (and the deep historical context of the last 100 years) ought to be reading Tom Campanella's stupendous book Concrete Dragon (Amazon), published earlier this year.


Anthony Townsend

Anthony has been researching the implications of new technology on cities and public institutions for over a decade. As Research Director at the Institute for the Future (IFTF) in Palo Alto, California, Anthony's work focuses on several inter-related topics: pervasive computing, the urban environment, economics and demographics, public and nonprofit organizations, and the media industry.

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Wastewater pouring out from a pipe.

Alabama: Trump Terminates Settlements for Black Communities Harmed By Raw Sewage

Trump deemed the landmark civil rights agreement “illegal DEI and environmental justice policy.”

April 13, 2025 - Inside Climate News

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 16, 2025 - Diana Ionescu

Black and white photos of camp made up of small 'earthquake shacks' in Dolores Park in 1906 after the San Francisco earthquake.

The 120 Year Old Tiny Home Villages That Sheltered San Francisco’s Earthquake Refugees

More than a century ago, San Francisco mobilized to house thousands of residents displaced by the 1906 earthquake. Could their strategy offer a model for the present?

April 15, 2025 - Charles F. Bloszies

People walking up and down stairs in New York City subway station.

In Both Crashes and Crime, Public Transportation is Far Safer than Driving

Contrary to popular assumptions, public transportation has far lower crash and crime rates than automobile travel. For safer communities, improve and encourage transit travel.

April 18 - Scientific American

White public transit bus with bike on front bike rack in Nashville, Tennessee.

Report: Zoning Reforms Should Complement Nashville’s Ambitious Transit Plan

Without reform, restrictive zoning codes will limit the impact of the city’s planned transit expansion and could exclude some of the residents who depend on transit the most.

April 18 - Bloomberg CityLab

An engineer controlling a quality of water ,aerated activated sludge tank at a waste water treatment plant.

Judge Orders Release of Frozen IRA, IIJA Funding

The decision is a victory for environmental groups who charged that freezing funds for critical infrastructure and disaster response programs caused “real and irreparable harm” to communities.

April 18 - Smart Cities Dive