China Vows Freer Movement for Workers by Relaxing ‘Hukou’ System

  • Household registration system to end in smaller cities
  • Beijing seeks to bolster economy without using broad stimulus
Photographer: Qilai Shen/Bloomberg
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China outlined plans late Wednesday to promote the freer movement of labor as authorities look to cushion slowing growth in the world’s second-biggest economy.

The policy statement issued by the State Council, China’s cabinet, included a pledge to relax the country’s household registration system, which has been criticized as discriminatory and a deterrent to urbanization. Authorities will also make it easier to move between employers and improve incentive systems aimed at encouraging workers to go to less developed regions.