Rural economies may break invisible shackles of hukou

Two months ago, some Chinese newspapers published an editorial urging that the hukou, or residency permit, system be scrapped immediately. The editorial said the policy was not only unjust, but acted as a drag on China's economy.

There is certainly much to dislike about China's long-standing internal registration rules. To start with, they arbitrarily divide Chinese citizens into two categories, urban and rural, not according to where they live, but on a hereditary basis.

While rural people can now migrate to cities in search of better job opportunities, they still face significant discrimination after leaving their countryside hukou zones.