China's future will be an urban one, but there are big challenges in building liveable cities and providing work for their inhabitants in the advanced economy of tomorrow. Today China is not so much at a crossroads as at an intersection with many forks. There is no single path that will lead China assuredly to become a wealthy and strong country by 2049, the centenary of the founding of the PRC. Many Chinese would like to see realized this dream of Xi Jinping, but far from all would agree with him and the party leaders on how to build a prosperous and sustainable future. This chapter will look at three challenges that will be crucial: making Chinese cities liveable, reducing energy use without reducing growth and incomes, and becoming a global innovator. These are inter-connected. Indeed, innovation in one form or another is at the centre of all paths to a sustainable future. China will need to develop the capabilities to deliver the science, the technologies and the processes that distinguish a high-income economy from the rest if it is to grow and sustain the living standards of the predominantly urban population.

Cities in China have long been among the largest in the world, yet only 40 years ago 82 per cent of Chinese lived in rural settlements. In 2020, 61 per cent of the population was urban. Rapid economic growth and massive migration swelled existing cities and created vast new urban settlements. Unbridled economic growth has had big environmental consequences, poisoning air, water and land in many parts of the country. China is paradoxically the world's largest emitter of greenhouse gases and the largest producer of renewable energy. Massive investment has created modern urban spaces and efficient intra-and inter-urban transport. The residents of these cities are ardent consumers of Chinese and international brands. Buying a car to get around the new urban areas is a must for the swelling middle class. China is not only the world's largest automobile market for conventional-powered vehicles, but also has more electrical vehicles on its roads than the rest of the world combined.