China's Ministry of Public Security is planning a new system for national residence permits, which will make longtime migrant workers in cities who contribute to the social insurance scheme eligible for an urban house registration, or hukou. This latest policy is in line with the notion of "free migration" mentioned in the government's work report.
Since reform of China's hukou system started in 1992, social welfare schemes in many cities have been affected. Obstacles to reform in medium and small cities are today fewer than in the past. Those facing the most challenges are eastern cities that have the most promising potential for development.
The new residence permit system seems to deliberately bypass obstacles in eastern cities and instead address problems existing in old policies. Such a move is encouraging, but we should recognize that problems behind the hukou dilemma in first-tier cities related to development issues and the limited capacity of metropolises.
To treat migrant workers like urban citizens requires expanded investment in healthcare and education, the premise of which is further economic and social development. If the increase of welfare resources cannot catch up with hukou reform, current urban citizens' welfare will be compromised. Under such circumstances, social conflicts threaten to be on a similar scale as the pre-hukou reform era.
Reform of the hukou system not only entails a system overhaul, but also a development campaign. We should walk faster toward such a goal, but shouldn't expect it to be accomplished too soon.
Problems brought by China's hukou system have remained the most difficult part of the country's social reforms. To some extent, the success of China's social governance has been proven. The scale of China's urbanization is the largest in the world, ushering in huge economic and social changes. At the same time, China's population has generally maintained order.
Gradual reform of the hukou system in step with China's social development is a mutually beneficial strategy.
"Free migration" is a new concept for China, but it has been generated from the experience of China's urbanization over recent years. Chinese society has reached consensus that the current hukou system is gradually dying out. We should prevent the path leading to greater fairness becoming a journey that amplifies unfairness to some.
When the hukou system cannot achieve absolute fairness, establishing principles to reach relative fairness becomes particularly vital.
Currently, the rights to have an urban hukou in big cities are initially granted predominantly to elites, while those who have been living in metropolises for a long time and integrated lives there are excluded. Big cities need to carefully reassess their policies for granting local hukou.