Pre-modern History
China's increase in urbanization was one of the several functions of the surpluses produced from the agricultural sectors in China (farming and pastoral dependency). This judgment is based on (1) the fact that not until the end of the Qing Period did China begin importing moderate quantities of foodstuffs from the outside world to help feed its population; and (2) the fact that the handicraft sector never challenged agricultural dominance in the economy despite a symbiotic relationship between them.
By the same token, urbanization rarely exceeded ten percent of the total population although large urban centers were established. For example, during the Song, the northern capital Kaifeng (of the Northern Song) and southern capital Hangzhou (of the Southern Song) had 1.4 million and one million inhabitants, respectively. In addition, it was common that urban residents also had one foot in the rural sector due to private landholding property rights.
Read more about this topic: Urbanization In The People's Republic Of China
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