A Political-Economic Analysis Of Urban-rural Relationship In China

Derived from experience of developed countries, transition from agricultural society into industrial one is the only way for under-developed countries for economic purposes. During this process, not only is urban-rural relationship an integrated subject which involves changes in political, economic and ideological systems or rules, but it includes many sub-subjects specific to every field because the nationals are endowed with happiness and welfare rights. Based on different conditions, the government shall develop its own way to deal with the relationship. As for China, the government also needs to source its policies from nation’s tradition as well as reality to cope with the relation just as Sinicism of Maxism.Misled by the policy of industrialisation-orientation for a long period, some Chinese scholars misunderstood the philosophy of urban-rural relationship and held that urbanization eradiate rural areas in the interest of citizens and as result, make obscure the function and process of rural development. The author bases the relationship on the distinct tradition of China because, contrary to the West countries, China is characteristic of highly centralized control, which also plays a vital role in gearing policies or laws to its economic cycle and relationship development.From perspectives of supply and demand, new systems should be developed or adjusted to satisfy the demand for resource factors. In this process, the factors will be revalued and applied to production not only based on economic function but effects on the value of human. In the end, supply will meet demand at the equilibrium point which exists to control the whole society to operate smoothly. The author combines the traditional theory of Yin&Yang, Five Elements and sociocybernetics to explain Chinese relationship tends to be harmonized in the long run while may be blocked for reasons of interest groups in short terms. After all, China has different cultural origin from freedom and democracy of the west and additionally, it hasn’t developed a mature and stable framework which works in today’s China.In the end, the author proposes an integrated, binary and multi-factor system model, which regards cities and countries as two components of an integrated body and connected by such five elements as Labor, Land, Capital, Information Technology and Systems. Provided that the model works, the author uses VAR model to verify the long-term interplay of household registration system, land ownership system, financial and fiscal system and suggests that an technological innovation system be developed to reduce the information cost between cities and countries in order to narrow the gap of inbetween.