Bank of America's Ting Lu writes that the key to urbanization is reforming the rural land system.

China's urbanization rate is said to have reached 51 percent in 2011, but if we were to strip away migrant workers without hukou (residency permits) and homes, the real urbanization ratio is closer to 36 percent.

Many argue that China is near its Lewis Turning Point i.e. the point at which the shift of people from agriculture to manufacturing does not lead to productivity gains, but Ting argues that "speeding up urbanization could both boost demand and improve efficiency, so it’s absolutely right for new leaders to focus on urbanization to sustain China’s growth and improve social harmony."