A member of the Center of National Development and Reform Commission, YuanChongFa, explained recently that the difficulty of implementing free population movement and breaking the “hukou system” comes from the existing fiscal framework. Currently, the government policies are not encouraging large population movement by continuing the “hukou system” under which native people can only enjoy some key benefits such as education in their original place of birth where the “hukou” is located. Yuan explained that if the population from other places of China is fully integrated into the local government for some big cities like Beijing, the city government can not afford.
Population control is considered as an obstacle for population movement freedom. But the issue is that this system, i.e. the hukou population control system so far seems to work fine in preventing the bankruptcy of the governments of the major cities where the non-local people already account for more than 50% of the total population. Similar case can be found in HK where the already overcrowded HK people did not truly welcome the inflow of the Chinese people from mainland two or three decades ago simply because the city can’t afford to keep such a large population.
Perhaps, this hukou issue or population movement dispute can be totally resolved when the rural area economy can be developed accordingly making all the villages better place for working and living as no one really want to live in the cities where we need to spend hours in the tram jam.