The continuity and changes of the Hukou system since the 1990s: A critical review

Abstract

Since the foundation of the People's Republic of China, a series of centralized public policies had played important roles in shaping the social landscaping of China society, and well-being of its citizens. The hukou system is one of the most important contributing factors to social exclusion in transitional China. Attempts to reform and abolish this system have led to a variety of policies implemented at the local level. Through examining the hukou policies in different hierarchical cities, this paper illustrates the ongoing trends of decentralization and commodification that are already evident in public policy reform. Local governments are gaining more autonomy as the reforms of public policy are intensified and local economies become more developed, and differentiation between locals and non-locals are more likely to become widened. Nevertheless, commodification in the reform of the hukou system opens the way for those who have greater wealth or are better educated. Local governments are increasingly using market forces to guide public policy, which is resulting in a growing marginalized or excluded class of rural-urban migrants and economically deprived urban dwellers. The paper argues that it is essential to rethink the roles of the government as both policy maker and economic actor, and the balance and paradoxes between the two. The importance of the government as a redistributor in public policy should be readdressed in contemporary China.