Chinas tremendous economic growth has led to huge discrepancies between different provinces as well as between rural and urban areas. Due to this development many people have left the mainly rural areas of the Central and Western provinces to search for better living conditions in the economically successful Eastern provinces. However, those provinces are increasingly confronted with big economic and social challenges. The high share of cheap labour has attracted lots of international investors. The export economy which has been usually settled down in the coastal areas has become the growth engine of the country. In fact, migrants have contributed to this development due to the provision of manpower. The prospect of income and better employment opportunities pulls ever more migrants in the cities. Migrants seem to be more attracted by the potential chances offered in urban areas than by the potential risk of urban poverty. As this leads to rising urbanization, agglomeration costs are increasing enormously. This development may become the source of social unrest. Indeed, migration appears to cause pressure on the job market, at least in that sectors where migrants directly compete with local residents. Surely, there is not just one solution to the phenomenon of migration in China. It seems reasonable to create impulses for growth in Central and Western provinces in order to reduce incentives to migrate to Eastern provinces. Moreover, rural poverty should be pushed back by implementation and expansion of adequate social security systems.