The development goal of Beijing is to make a "Livable city". However, population keeps rising in this national capital which is projected, based on current conditions, to have a population of 21 million or even more by 2020, of which 70% will be regular residents. This is clearly beyond the original target of 18 million by 2020 as set in the Development Planning (2004-2020), and it poses a lot of challenges to the city. Beijing is already facing constraints on energy, housing, transportation, education, employment and even retirement planning, which have impact on the city’s long-term economic and social development and need new ways of management. All of these are closely related to the population size, structure and distribution. This report looks at various reasons leading to Beijing’s population explosion and how the government attempts to resolve the issues and turn challenges into opportunities.