Removal of hukou barriers can spur better bussiness startups

Reform of the household registration system (hukou) could have the most direct impact on the economy as the nation's traditional advantages such as cheap and abundant labor wane, a top economist told China Daily. [Photo/IC]

At a recent meeting of the State Council, Premier Li Keqiang advocated further propelling reform to remove policy barriers to talent flow, including the hukou system, and encourage creative business startups. Comments:

Almost four decades have passed since China adopted the reform and opening-up policy and took the path toward prosperity. A key lesson we should learn from the past 37 years is that talented people must be liberated from restrictions and be allowed to freely flow to the industries and the cities that need them, so as to propel economic development. Freedom of movement is the key and the premier has hit on the right point by calling for reform of the hukou, the household registration system; we hope the government agencies echo his call.

ce.cn, June 8

What the premier has initiated is like cultivating mushrooms. You do not need to plant them one by one; all you need is to remove the barriers and create a friendly environment with favorable policies, then the talent will rush in and businesses will grow like mushrooms. That's the right direction.

Liu Shangxi, director of the Research Institute for Fiscal Science, Ministry of Finance, June 5

The most important of all the initiatives lies in removing policy barriers such as the household registration system. Where there are business opportunities and ample support for new business, people will rush in.

Yang Fang, a consultant for graduate business starters at Central South University, June 5

It is foolish to expect that metropolises such as Beijing and Shanghai will loosen their hukou restrictions in the near future because their capacity for new residents is limited. Second-tier and third-tier cities need talented people to start businesses there, and there is less opposition to relaxing the hukou restrictions to attract them.

Ma Luting, a researcher at the National Center for Education Development and Research, June 5