Like other developing countries, the key problem China faces in its path towards modernization is urbanization.

Only 515 million, or around 40 per cent of the 1.3 billion population, were urbanites as of the end of 2003, compared with an average 70 per cent in developed countries.

China's arable land has reduced from 130 million hectares in 1996 to 122 million hectares last year; and per capita arable land is 0.093 hectares, only one-third of the global average.

While strengthening efforts to curb the loss of farmland, the central government has mapped out policies to provide farmers with reemployment training and other social security guarantees.