Consumerism is undeniably on the rise in Guangzhou.

Guangzhou is very much a city in transition. Caught between socialist ideology and rapid capitalist development, it is being forced to deal with newly arising economic, ideological and structural contradictions. The change that the city is experiencing provides it with both challenges and opportunities. As Guangzhou adopts new functional roles and adapts to new demands, problems of inadequate infrastructure and poor service provision become even more evident; however, this provides an excellent chance for the city to improve its organization and economic efficiency.

The process of privatization is likely to continue, as is the emphasis on attracting capital investment. These strategies have been successful so far in increasing the city's prosperity and strengthening its industrial base. However, the increasing disparity of income between different segments of the population in Guangzhou is beginning to create resentment and dissatisfaction, both on an ideological and a personal level. Some politicians worry that this disparity has the potential to create social unrest.

Another challenge in Guangzhou's future is the influx of migrants from the north. Although migration into cities is tightly controlled in China, a "floating population" of temporary migrants has descended on Guangzhou. The already overcrowded transportation and housing in the central city is further strained by these rural migrants, and the stream of illegal migration shows no signs of slowing down.

Physically, Guangzhou is in transition from a compact, low-rise city to a decentralized, sprawling, high-rise metropolis. Redevelopment projects in the central city are bulldozing old residential areas and replacing them with primarily high-rise developments. While this redevelopment is improving service provision and eliminating some of the most poorly maintained housing, many Guangzhou residents have difficulty adjusting to new homes in high-rise complexes.

Guangzhou's skyline is changing due to the recent emphasis on high-rise construction.

Guangzhou is also becoming more socially liberal. The decentralization of power in China and the reduced role of the state in economics are construed by some as a prelude to democratization. Regardless of whether or not this is true, increasing foreign influence has changed the attitudes of many Guangzhou citizens. The current moral atmosphere in Guangzhou has been described as a "free-for-all," creating some disillusionment with prosperity and liberalization.

Guangzhou will continue to grow in population and economic influence. However, in the future it may face competition from other Southern Chinese cities that are rapidly approaching Guangzhou's level of industrialization.