Whether China can implement deeper reform to its household registration system will serve as a litmus test as to whether Beijing’s commitment to common prosperity is real, says a political risk analyst.
. These reforms are undoubtedly a net positive, yet there remains little indication that Beijing is serious about undertaking the reforms required to facilitate wholesale changes to the system.
The system enshrines and indeed perpetuates China’s sharp urban-rural divide and inter-provincial inequalities. And because hukou status is often inherited, the children of itinerant workers typically lack access to public education where they live. Almost 70 per cent of Chinese children have rural hukou.
Zhejiang is not the first province to remove restrictions. Shandong, Jiangxi and Hainan undertook similar reforms in 2014, 2021 and 2022 respectively. The hope is that, as an influential province intimately connected with President Xi Jinping’s career and as a “common prosperity demonstration zone”, Zhejiang’s reforms will have more of a nationwide impact.
Unfortunately, there is still considerable room for scepticism. It will be instructive to see what percentage of applicants in Zhejiang are awarded an urban hukou. Experiences in other provinces show a strong preference among local officials to favour wealthy or skilled migrants. As only around 10 per cent of people in China pay income tax, hukou conversion would likely cause local government revenue to suffer even if overall GDP grows. The corollary is that sustainable hukou reform requires deeper and even more politically contested fiscal and taxation reforms.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
US, China square off on the South China Sea as Indonesia urges leaders to maintain peaceLeaders of the US and China met with ASEAN leaders in Jakarta amid heightened tensions in the region.
Read more »
Commentary: Pets add colour to Singapore’s public figures and politiciansThe pets of Singapore's presidential candidates helped voters see the individuals beyond their formal roles, says the Institute of Policy Studies’ Teo Kay Key.
Read more »
Commentary: Why outdoor festivals like Burning Man are reeling from extreme weatherOutdoor festivals are a summer rite of passage for many but climate change will make festival disruptions more frequent, says this University of Melbourne climate scientist.
Read more »
Commentary: What drives Gen Zs at work and how can bosses better engage them?Each year, we welcome more from Generation Z (Gen Z) to the workforce. By 2025, Gen Zs will make up a quarter of Asia Pacific’s population, the same proportion as millennials.
Read more »
Commentary: If Putin needs North Korean weapons, he’s in troubleRussia seeking to buy North Korean ammunition reflects its diplomatic isolation and military shortages arising from its war on Ukraine, says Pusan National University’s Robert Kelly.
Read more »
China bans government officials from using iPhones for work: ReportChina has ordered officials at central government agencies to not use Apple's iPhones and other foreign-branded devices for work or bring them into the office, the Wall Street Journal reported on Wednesday (Sep 6), citing people familiar with the matter. The orders were given by superiors to their staff in
Read more »