Li Keqiang warns of urbanisation risks in first speech as premier

Premier Li Keqiang has warned of the hidden risks of an "unprecedented" urbanisation push in the world's most populous nation, saying the relocation of millions of rural residents to cities would take a long time.

Addressing his first news conference as premier yesterday, at the end of the annual legislative meeting, Li said the risks include the loss of arable land and creation of new urban poverty, suggesting he would proceed with the urbanisation carefully.

Some researchers have warned that migrant workers might lose their countryside land once they are relocated, and that a lack of good jobs in urban areas may keep their incomes low, causing the wealth gap to widen.

Analysts have said asset bubbles could form due to massive investment in infrastructure projects by local authorities in the name of urbanisation. Some of the projects ignore real demand.

In response, Li said the urbanisation strategy was crucial to the interests of rural residents. He said farmers often told him during his tours to the countryside that they wished to "live the same lives as urban dwellers".

"Urbanisation will usher in a huge amount of consumption and investment demand, increase job opportunities, create wealth for farmers and bring benefits to the people," said Li, who began exploring the topic as a doctoral student at Peking University.

But he also cautioned that it was also a "complex systemic project" that must be bolstered with various reforms.