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Over the past 30 years, rapid urbanization and economic growth have transformed the cities of the People's Republic of China (PRC). But this unprecedented urbanization has highlighted challenges that demand significant changes to basic urban management and planning policies. This report is based on a 2011–2012 policy study for the PRC's forthcoming national urbanization plan that will set out urban development policies and guidelines over the coming decade. It examines the PRC's urbanization challenges and suggests actions for improving the urban environment through changes in the design, financing, administration, and social integration of cities.