China Eases Residency Rules for Migrant Worker Benefits

Beijing on Friday eased residency restrictions on social insurance coverage for migrant workers. The change removes a requirement that people working in Chinese cities claim benefits in their home regions. The adjustment applies to the hukou system, which has long tied access to services to a person's registered place of residence.

Nearly 400 million migrant workers keep larger cities running, according to Semafor.

The new policy allows migrant workers to access benefits where they work rather than where they are registered. Semafor reported that the overhaul could narrow urban-rural divides. An agrarian political economist said the change could mark a step toward eliminating major rural-urban inequality that has characterized the post-1980s Chinese economy.

Analysts said hukou reforms could boost domestic consumption by reducing precautionary savings that migrants accumulate because they cannot access safety nets in their places of work. The report did not provide specific figures on expected spending increases.