China is one of the greatest success stories of urbanization but now needs to transit to a new model of coordinated and consolidated development policies, said Angel Gurria,secretary general of the Organization for Economic Co-operation and Development.
Gurria, speaking at the China Development Forum on Saturday, said urbanization and economic development have for decades been underpinned by cheap labor, cheap land, under-pricing of environmental externalities and rising export demands, but these factors can no longer be relied upon.
"GDP growth reliant on domestic consumption, resource efficiency and higher productivity will require a new normal of urbanization," Gurria said.
With over 100 million people moving to urban areas in the next five years, urbanization will depend on the quality of city growth, said Gurria.
The government aims to have 60 percent of the nation's population living in urban areas by 2020, up from 52.6% at the end of 2012.
One key aspect of the new growth mode will be greater coordination of policies, as Chinese cities grow together to form vast urban regions.
Initiatives such as the Beijing-Tianjin-Hebei regional development would allow better efficiency through coordinated planning of financial resources, land use and transportation networks, said Gurria.