China's urbanization process has reached a critical juncture. Inequality between town and country is producing explosive revolts surrounding the cities. The problem of how to contain these revolts is at the core of policy making and is reflected in conflicts inside the Central Committee of the ruling Communist Party.
The background to this is that rural rebellions have escalated over recent years. Yu Jianrong director of the Rural Development Institute's Social Issues Research Center at the Chinese Academy of Social Sciences gave explicit warnings to the Chinese leadership of a revolutionary crisis developing in the countryside and new proletarian zones in the interior provinces.