Changes in China’s Administrative Divisions

Over the past 20 years, the number of villages has dropped by more than 1 million, leaving just over 2 million. County-level divisions have shrunk from more than 2,000 to a little over 1,000—though roughly 900 of those were consolidated into municipal districts or downgraded to towns. In other words, over 30% of the rural population has moved into cities (reinforcing the idea that the 60% who haven't migrated are, effectively, the "lagging" segment).

That's why many local governments are also downsizing civil service agencies and staff.

The Disappearing Counties, The Fading Iron Rice Bowl