For decades, the household registration system has functioned as a powerful device in halting rural influxes into Chinese cities. The exigencies of the reform call for reform of the hukou system. One of the many attempts is the blue chop household registration system. Both Shanghai and Shenzhen have introduced this practice. In addition to promotion of real estate and investment, it creams off those more desirable migrants into the permanent population of the two cities. In view of the present situation of linking welfare provision with household registration status, this selective migration policy seems to be a sensible step forward.
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