Relocation

Population control is just one part of the solution. Another way of improving the population structure and easing the problem is to relocate certain businesses.

The Beijing government has already relocated some non-core sectors to nearby regions. In the past decade, Shougang Group, once the largest steelmaker in the capital, has gradually moved its plant to Caofeidian, Hebei province.

Meanwhile, a decision has been made to relocate Beijing's three biggest wholesale markets to nearby cities.

In the future, the service sector will become Beijing's prime economic driver, replacing heavy industry and manufacturing, as the city strives to reinforce its role as a hub for four sectors - politics, culture, international communications and technological innovation.

Shanghai, the country's financial center and a major economic driver, will reduce the number of non-core functions within the city by strengthening integrated development with urban agglomerations in the Yangtze River Delta.

"The relocation of certain sectors will lead to some of the population moving out of the city as people follow the industries that employ them. Added to the reduction in the total area approved for construction projects, the population will decline as the structure changes," Yu said.

Wang Taiyuan, a professor of population management at the People's Public Security University of China, said the nation's urbanization process has taken just 30 years, compared with several centuries in Western countries, and the rapid rate of change has resulted in a number of difficulties.

"The problems include a shortage of education and medical services and a huge developmental gap between urban and rural areas," he said. "However, modern transportation and convenience of information mean people ignore opportunities in small - and medium-sized cities and only focus on the larger cities. That has exacerbated the problem."