Social exclusion in Chinese cities in the 21st century

Although income inequalities in Chinese cities are at a fairly low level compared to other developing countries, urban social exclusion has increased in the context of globalisation and accelerated economic growth. Two main factors have contributed to the accentuation of social exclusion in modern urban China. First, globalisation and increased Foreign Direct Investment have resulted in restructuring and deindustrialisation. The development of capital intensive and high tech industries has not been able to compensate for job loss in labour intensive manufacturing, thus creating massive unemployment. Second, welfare retrenchment has accentuated the plight of a new urban underclass. The paper will focus on social exclusion in Shanghai, where the rise in unemployment owing to the disappearance of traditional industries is the major factor behind the emergence of urban poverty in China. Social exclusion represents a major challenge in 21st century China and requires the establishment of new social protection mechanisms that focus on improving life chances – for instance through a major investment in early education - as well as traditional redistributive measures.

Chinese Cities and the Outside World: A Workshop for City, Culture and Society. Ed: Richard Croucher, Pingli Li and Hiroshi Okan