Posted 1/4/2024, 2:00:13 AM
China Mulls Giving Migrants Urban Status to Unlock Consumption, But Fiscal Constraints Loom
- China considering giving rural migrants urban residency to unlock trillion yuan consumption potential, but impact may be limited due to belt-tightening by local governments
- Reforming hukou system could allow migrants better access to services and boost spending by 30%, says economist Cai Fang
- Further reforms could stimulate housing purchases and consumer demand, according to former finance minister Lou Jiwei
- Premier Li Qiang stresses "people-centered" approach to urbanization, focusing on quality of life over growth metrics
- Questions remain whether local governments can afford equal services for migrants, with tight budgets and high debts