China to speed up plans to abolish residency restrictions

BEIJING (AFX-ASIA) - The government is speeding up plans to abolish China's residency restrictions in an attempt to encourage the free flow of labour throughout the country and dismantle a major barrier to economic growth, the Business Weekly reported, citing government officials.

	    It said the Ministry of Public Security, which regulates the 50-year-old residency policy, confirmed the move and confirmed that some draft policies have already been submitted to the State Council for approval. 

	    Bai Hejin, president of the State Development Planning Commission controlled Academy of Macroeconomic Research, was quoted as saying that the new policy, which has already been introduced on a trial basis in a few smaller counties and townships, will be implemented on a nationwide basis in the near future.

	    However, he added that the changes would likely not take effect everywhere for several years.

	    He would not provide an exact timetable for the implementation, but said the government would introduce the policy after studying research based on the trials.

	    Under the current residence permit or "hukou" system, people are only allowed to live and work in their permanent residence and cannot move to other towns or cities without approval from the authorities.

	    Although residency restrictions have eased since the reform and opening policy started in 1978, and millions of migrant workers have flooded into big cities in search of work, they are not given the same rights as official citizens, the paper said. They have to pay additional fees to educate their children in addition to a range of other charges. 

	    The system has also led to problems for educated professionals employed by foreign funded enterprises, who are often sent to work in different cities, the paper added.

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