Based on information drawn from many large migration surveys carried out in mainland China, this paper analyses the impacts of recent migration, especially those in the category of "f1oatingpopulation" and related policy issues. It is argued that the plentiful supply of cheap migrant labor is crucial to China's recent economic growth in the coastal region. While these influxes have burdened urban infrastructure and contributed to rising crime rates, there is significant scapegoating in the media and discrimination against peasant migrants in urban areas. Increasing marginalization of non-hukou migrant workers in Chinese cities also poses serious concern to urban social stability. Rural outflows have lessende population pressure and generally have limited negative impacts on agriculture at this stage. China needs to reverse its urban-biased policy, reform its household registration system and articulate a more coordinated policy on migration, integrating it into the national development strategy Migration can be actively used as a tool to promote regional economic development and alleviate poverty.