Innovation in the West is almost exclusively identified with technology and business. Innovation in China operates in the larger context of the transformation from a dualistic urban/rural society to an equal society. The abolishment of the historically grown separation of China’s urban and rural populations, in which rural people are denied equal public service, and therefore limiting their economic rise, is the core of the challenge.
A sudden abolishment of the limitations would be unbearable for budgets of cities; to maintain the situation could lead to social upheavals. The solution is to create conditions for a step-by-step smooth transition. To reach that goal Chengdu has developed a comprehensive model. It simultaneously embraces three areas: reform of property rights, equalization of public service and improving grassroots democracy. With this “triangle” Chengdu is building the legal foundation which will enable its rural population to by their own efforts gain a share on China’s economic progress.
In addition Chengdu has created conditions to attract direct foreign investment which in due course will generate the jobs for a growing urban/rural population.