China should learn from the negative urbanization experiences in foreign countries and set out a clear plan from the start, economists and entrepreneurs said at the Boao Forum for Asia.

Neville Power, chief executive at Australian iron ore company Fortescue Metals Group, said urbanization should go hand in hand with industrialization. If this happens China will avoid the negative experiences of Latin America, where large numbers of migrants flocked into big cities before industrialization and inadequate job opportunities led to slums within cities.

"Cities should provide a variety of residential conditions for city dwellers, where high density areas coexist with low density suburban areas," Power said.