China's Controversial 'Hukou' System - A Barrier to Services and Consumption for Millions of Migrant Workers
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China has rules, called "hukou", that restrict people's access to services based on their place of birth. Reforming this system has faced hurdles.
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Hukou reform could boost consumption and property demand, but cities worry about the fiscal burden and social stability risks.
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About 65% of Chinese live in cities, but only 48% have urban hukou, leaving many migrants without full access to services.
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The hukou system holds back domestic consumption, with estimates that it reduces spending by over $280 billion per year.
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Beijing and other big cities are unlikely to open up hukou access soon due to concerns about social stability and financial constraints.