China relaxes household registration in bid to urbanise 100 million rural migrants

The Chinese government on Wednesday laid out plans to further loosen its household registration system, as it aims to encourage 100 million migrant rural workers to settle in cities.

The document released by the State Council will relax requirements for applications for city household registrations, or hukou, with smaller cities loosening regulations more quickly.

Unregistered migrant workers are currently denied many social welfare benefits but the government said it plans to gradually expand benefits to all long-term residents, regardless of them holding a hukou registration.

The order came after Premier Li Keqiang pledged earlier this year to help 100 million farmers migrate to cities and receive urban hukou, as part of a large-scale urbanisation plan.

The household registration scheme was implemented in the 1950s as part of the planned economy. The system identified each citizen either as rural or urban, effectively limiting opportunities to migrate from rural areas to cities.

The system has been eased somewhat over time but remains regarded as both a strain on labour movement and unfair – especially to migrant workers unable to enjoy social benefits and public education for their children in the cities where they work.

The document orders small towns and cities to completely remove all limits on registration. In medium-sized cities, long-term residents with stable employment will be eligible to apply.