Policy and Planning Challenges to Promote Efficient Urban Spatial Development during the Emerging Rapid Transformation in China

Abstract: This paper investigates the linkage between emerging urban spatial development and institutional arrangements in China. Emerging spatial patterns, which are prevalent and sizable so that any impacts will be substantial, include dispersed employment concentration, fragmented land development, over-scaled land development, leapfrogging development, and whack-a-mole development. From the institutional point of view, these patterns are associated with decentralization, fiscal incentives for local government, land regulations, and fragmented planning system. It is concluded that these emerging spatial patterns significantly affect long term city sustainable growth and comprehensive reforms are needed to promote efficient urban spatial forms. It is further concluded that labor division between planning and markets should be reshaped in determining urban spatial growth by shifting planning to focus on zoning that provides sufficient development room in a long term and making markets to decide the timing of land development.