Hukou: China's Great Urbanization Challenge

A 2,000 year old household registration system in China ties temporary urban workers to rural life.

2 minute read

February 10, 2013, 9:00 AM PST

By boramici


Chinese migrant workers have little incentive to become permanent residents of the cities they inhabit and work in temporarily while saving up to retire with their families in rural China. Of the 160 million who leave family farms to find work in cities, only 33 million bring their families along.

According to the Director of the Center for Chinese Studies at the University of Michigan Mary Gallagher, rural Chinese value their land and are not willing to give it up for city life where unemployment and a high cost of living are real risks. Because the Chinese government owns all land in China and farmers cannot lease or mortgage it, city workers leave behind relatives who can work the farmland, which provides enough food to feed its tenants.

An added challenge to permanent urbanization in China is the current organization of the household registration system, "hukou."

Tying rural workers to their land, the 2,000 year old hukou system categorizes all Chinese citizens as either rural or urban and links all their social benefits such as health care, education and pension to their place of birth.

Temporary urban workers are not eligible for subsidized public housing, public education beyond elementary school, medical insurance or welfare payments.

While the new administration of Xi Jinping believes in continued urbanization for economic growth, according to Chen Xiwen, head of the Communist Party office on rural policy, China's real urbanization rate is only about 35% rather than the official 53%.

Some cities are more accommodating than others, however. Since the 1990s, Shanghai, Shenzhen and Guangzhou have been allowing people to apply for local hukous if they buy property or invest a large sum in the city. Shanghai also allows those who have lived in the city as temporary tax-payers for seven years to qualify.

Thursday, February 7, 2013 in The Washington Post

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Aerial view of single-family homes with swimming pools in San Diego, California.

San Diego to Rescind Multi-Unit ADU Rule

The city wants to close a loophole that allowed developers to build apartment buildings on single-family lots as ADUs.

March 9, 2025 - Axios

Canadian flag in foreground with blurred Canadian Parliament building in background in Ottawa, Ontario, Canada.

Has President Trump Met His Match?

Doug Ford, the no-nonsense premier of Canada's most populous province, Ontario, is taking on Trump where it hurts — making American energy more expensive.

March 11, 2025 - Toronto Star

Close-up of green ULEZ sign in London, UK.

Study: London ULEZ Rapidly Cleaning up Air Pollution

Expanding the city’s ultra low-emission zone has resulted in dramatic drops in particle emissions in inner and outer London.

March 10, 2025 - Smart Cities World

New York City city hall building.

Are Black Mayors Being Pushed Out of Office?

The mayors of New York, St. Louis, and Pittsburgh all stand to lose their seats in the coming weeks. They also all happen to be Black.

16 minutes ago - Governing

Bird's eye view of coastal erosion next to a roadway in Sunset Cliffs, California.

‘Innovative DOT’ Guide Offers Path to Resilience for State DOTs

A new resource offers concrete recommendations for thriving in a changing transportation landscape, prioritizing a ‘fix it first’ approach to infrastructure maintenance.

1 hour ago - Transportation for America

Close-up of smart phone with USDOT website open.

USDOT Eliminates Environmental, Equity Considerations

A new memo rescinds Biden-era regulations that prioritized renewable energy, accessibility, and equity for historically disadvantaged communities.

March 13 - Smart Cities Dive

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.