The `hukou` system is one of the most fundamental and controversial pillars of modern Chinese society. While its roots trace back to ancient dynasties for tax collection and social control, its current form was solidified in the 1950s. The initial goal was to prevent mass migration from the countryside to the cities, ensuring agricultural production and managing urban resources in a planned economy. Comparison with Western “Residency”: In a Western country like the United States, “residency” is a fluid concept. You can move from a small town in Idaho to New York City, and after a simple administrative process (like getting a new driver's license), you are considered a New York resident. Your children can enroll in local public schools, and you can access local social services. The `hukou` is profoundly different. A person with a rural Anhui `hukou` who moves to Shanghai for work is not a Shanghai resident in the eyes of the system. They are part of the “floating population” (流动人口, liúdòng rénkǒu). Despite living and working in Shanghai for years, they cannot:
This system creates a de facto caste system, entrenching the urban-rural divide (城乡差距, chéngxiāng chājù). An urban `hukou` in a major city like Beijing or Shanghai is an incredibly valuable asset, often a prerequisite for a middle-class life. Changing one's `hukou` from rural to urban is extremely difficult, often requiring a university degree from a top school, a high-skilled job, or significant investment.
The `hukou` dictates the daily realities and major life decisions for Chinese citizens.