No. China has resources which the people would readily allocate towards having houses made out of more than tin-roofs and plywood, allocated instead to the purposes of an overbearing central government. There is plenty of space for the Chinese in China, it's just inefficiently used - because there is even yet virtually no independent economy. ...And Mega-cities don't get that way because people in them reproduce, as much as because people move into them from elsewhere.
"Life is too precious"? For what, to be allowed to live?
http://216.239.51.100/search?q=cache:VjmlEBh-93sC:www.bethany.com/profiles/a_code/china3.html+China++land+is+arable&hl=en&ie=UTF-8
The northwestern provinces have great economic value because only about 15% of China's land is arable and therefore the dairy and meat resources of the grasslands could provide much food for an already overpopulated nation.