Laura Ruggeri: China Removes the Hukou Barrier
China Removes the Hukou Barrier. A Game-Changer for 357 Million Workers
In a move that could fundamentally reshape the country’s economic and social fabric, today China's State Council issued a directive to eliminate the long-standing barriers that have prevented migrant workers from accessing employee social insurance in the cities where they actually live and work. The reform, built on the principle of renhu fenli—separating residence from household registration—extends healthcare, pensions, education, and housing to over 357 million internal migrants.
Economically, the move is a strategic breakthrough. For decades, the old system suppressed domestic demand by keeping migrants in a precarious, disposable labor pool. By granting them a safety net, Beijing aims to unlock massive consumption, encourage long-term settlement, and build a unified national market.
The decision ends a two-tiered citizenship and delivers long-overdue justice to those who built China's urban boom. Politically, it fulfills the 15th Five-Year Plan's goals and rebuilds public trust.
Source: Telegram "LauraRuHK"