Commentators are wondering how much the China economy will grow this year. Some are concerned that there appears to be a bubble created in excessively high real estate prices. If you know how to read stock charts then you know the Chinese stock market went up a lot early last year and is now going sideways. While others parry this worry with the consideration that the rise is taking place unevenly. They point to past stock market history and worry about the future.

The World Bank as well as the Government of China believe the stimulus will continue support the economy this year as well. So far, the stimulus has led to the expansion of the car market, which has is bigger than the U. S. Auto vehicle market. Last year, China moved on to become the world's top exporter.

During his address to Asian-Pacific business leaders last year in November, China's President outlined the main features of the strategy for economic expansion. One element was to support growth of domestic consumption. The second element was to deepen reforms in sectors prioritized by the government. The third element was to improve people's personal areas of concern such as the safety net, health care, housing, senior support facilities and their environment. The fourth element to further open the market and trade sector.

Boosting Urbanization To Boost Domestic Consumer Market

In early December 2009 a three-day central economic work conference released the information that the government intends to see that urbanization is encouraged to play its part in efforts to raise domestic consumption. To spread growth across China, policymakers have considered the lifting of control on permanent residence in small and mid-sized cities and towns that has limited the movement of rural migrants to urban regions. This policy has also enabled the government to be able to see that rural migrants have better housing facilities than migrants do in other countries. This positive attributes of this adequate housing feature have not gone unnoticed outside China.

Urban employment has given Chinese rural migrants an enviable income stream. The Consultative Group to Assist the Poor released figures in 2005 that revealed China's urban migrants earned more than foreign migrants of the leading country receiving remittances from its foreign labor. The higher income earnings from urban employment is thus known to the Chinese Government.

This urban expansion policy will be facilitated with the growing rail network. China's high-speed lines will make it easier to move more people between urban regions. The first line came into operation with the Beijing Olympics and connected the city with Tianjin. The high speed link between Guangzhou and Wuhan became operational in December of 2009. The link from Guangzhou will eventually the city with Beijing. Officials let it be known last fall that the plan was to build over forty high-speed lines by the year 2012 to help spur economic development. China's prospects will speed along with its expanding rail system hence prospects are that China will grow for years to come.