China set to abolish Mao-Era residence permit rules

Posted on December 18, 2023   |  

Chinese authorities are pushing for changes in the urban residency system to address a slow property market and reduced consumption.

Recent efforts focus on relaxing or eliminating the hukou, an internal passport system that has restricted people to their places of origin since the 1950s.

In August, the Ministry of Public Security urged cities with up to three million people to abolish hukou, and those with three to five million to significantly ease issuance.

Zhejiang and Jiangsu provinces have plans to open up to new residents, indicating a shift in policy.

Despite acknowledging the economic benefits, officials are cautious, fearing potential disruptions to social stability and additional financial burdens on indebted cities.

China's large cities face challenges in residential capacity, pollution, and congestion, limiting their ability to accommodate more people.

Smaller cities with excess housing stock struggle due to surging debt, hindering efforts to expand access to health facilities and education.