Reform of hukou system

A sweeping reform being planned for China's decades-long hukou, or household registration, system, if forcibly pushed through in the years ahead, may remove the entrenched barrier that has stopped many rural people settling in cities and lubricate the country's efforts to accelerate urbanization.

Huang Ming, vice-minister of public security, said at the ongoing session of the Chinese People's Political Consultative Conference National Committee, China's top advisory body, that a unified national residence permit system is due to be set up to replace the controversial hukou system. He said on Wednesday it will allow migrant workers who have worked in cities and joined their social insurance networks for a certain period of time to enjoy the same welfare guarantees and services as registered local residents do. According to him, different standards will be adopted for large, medium and small cities.

This will be a significant reform that will help boost China's urbanization campaign and facilitate its efforts to shift to consumption-driven growth of the national economy.