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As Beijing's migrant population continues to grow, some experts believe the decades-old hukou system is outmoded and broken. A migrant worker walks past a row of new property buildings in Beijing April 4, 2007. As Beijing's migrant population continues to grow, some experts believe the decades-old hukou system is outmoded and broken. [Reuters]The policy requires migrants to get temporary permits, or the much harder to obtain hukou, once they move to the city. These days, a growing number of those who relocate to find better jobs in Beijing tend to stay longer or even resettle with their entire families, according to a study by the Renmin University of China. The investigation revealed that this "floating population" in Beijing, currently at 3.57 million, stays an average of 4.8 years in the city. In addition, over 51 percent of those remain for more than five years while over 41 percent bring the whole family. "It is getting trendier for them to come and reside with the whole family," said Zhai Zhenwu, dean of the School of Social and Population Science. Representing 23 percent of local residents, most migrants live in the nearby suburban areas and villages within downtown. The thriving low-skilled labor market in Beijing has been a major source of jobs for unskilled migrants. Zhai said the most basic jobs in the city offer higher wages that far exceed what migrants would have earned in rural areas. But city life also means a poor quality of life and inadequate social services. For example, statistics show that the urban per capita disposable income in Beijing is five times more than the average in rural areas of neighboring Hebei Province and 6.7 times more than that in Anhui Province. China's hukou system, established in the 1950s, divided the Chinese into two categories: rural and non-rural households. The policy was established to control population migration, largely from rural to urban areas. Under the policy, rural people are not granted social security in cities and are restricted from receiving public services such as education, medical care, housing and employment. On the other hand, their urban compatriots have no access to farmland in the countryside. For years, non-rural residency, especially in cities like Beijing and Shanghai, has been a difficult goal for outsiders, particularly rural migrant workers. According to Zhang Chewei, vice-president of the Research Institute of Population Science at the Chinese Academy of Social Sciences in Beijing, the system needs work. He referred to the "unfair treatment in social recourses and justice, also it hinders market development in both rural and urban areas." For example, each migrant worker must fork over 20,000 to 30,000 yuan (,597 to ,896) for a child to enrol in a local primary or middle school. And they're often turned down if they try to buy affordable homes in urban areas. It is estimated that more than 120 million rural workers live in cities throughout China. "Hukou has played a significant role as basic data provider and identification registration in certain historical periods, but it has become neither scientific nor rational," Zhang said. Reform of the hukou system began in 1992, but the policy remains complicated and unfair for many. Last month, the Ministry of Public Security said the country will reform the system, but did not offer any details. Yu Lingyun, a professor with the Law School of Tsinghua University, called for the system to be abolished. "It is not hukou that has robbed the social welfare of the 'floating population,' but the discriminating system itself, and most fundamentally the limited public finance," Yu told China Daily yesterday. "If not for the hukou system, schools can find other reasons to decline a rural student," he said. "Under current conditions, at least we should not bear any prejudice against them," he said.  

China is moving in the direction of raising its caps on foreign ownership in banks but has no timetable for doing so, Liu Mingkang, head of the China Banking Regulatory Commission, said on Thursday. "It takes time, but it's the orientation -- we are moving forward," Liu told reporters after meeting with U.S. lawmakers on Capitol Hill. Asked whether he knew when the caps, currently set at 25 percent, would be lifted, Liu replied: "There is no timetable." U.S. Treasury Secretary Henry Paulson has been pushing hard in an effort to get China to raise the caps and improve the access U.S. firms have to China's financial sector. China's central bank governor, Zhou Xiaochuan, also said China needed to further assess the economic situation before deciding on more monetary tightening measures. "We already have some tightening policies, so we are not hurrying to make any further -- it takes time to look at the feedback," Zhou said. Liu and Zhou were part of a top-level Chinese delegation in Washington for two days of talks with Bush administration officials hosted by Paulson, as well as meetings with legislators upset over the huge U.S. trade deficit with China.

The central finance department will continue increasing its support to the country's rural areas, sources from a meeting of the political bureau of the Communist Party of China Central Committee said.The Xinhua News Agency on Saturday cited a political bureau meeting as saying that the country should further muster up strength to solve the problem of its poor agricultural infrastructure and the sluggish development of rural areas by "increasing input in agricultural sectors and rural areas".The report, which comes just days before the Party's 17th National Congress on October 15, the most important political gathering in China which will set guidance for future development, suggests Party leaders are concerned about the urgency needed to improve farmers' lives, analysts said.An anonymous official from the Ministry of Finance said that the central government has made financial support for rural areas a major priority .The country has rolled out a series of preferential policies to boost the development of its vast countryside, home to its more than 700 million rural people, including agricultural taxation reform to alleviate farmers' burden and direct subsidies to ensure gains from growing crops.The State has also exempted farmers from some taxes such as those in the slaughtering and animal husban-dry industry.Statistics from the ministry shows that the central coffers plan to invest 391.7 billion yuan ( billion) in the development of its rural areas this year, an annual increase of 15.3 percent.To further encourage farmers to grow crops, billions of yuan have been allotted for agricultural subsidies for grain prices, seeds, and cultivation facilities.About 125 billion yuan of tax has been waived since the removal of a series of agricultural taxes in recent years, the official said.The results of these preferential policies were obvious, the official said, with statistics showing a fourth consecutive bumper grain harvest this summer.

China's work safety agency denied claims that current coal shortage was due to the closure of small, illegal pits."China is not short of coal as the country turned out 2.53 billion tons last year, a rise of 8.2 percent year on year. Output could jump by 3.3. percent this year", said Huang Yi, spokesman for the State Administration of Work Safety (SAWS).The campaign against the illegal collieries is aimed at those without production permits working under risky conditions. The shut-down of 11,155 small coal mines in the past two years means the elimination of that number of potential pit tragedies, said Huang in an online interview with www.ce.cn on Friday.Among the suspended collieries, 7,000 to 8,000 have merged with larger mines. The output of small coal mines still account for one thirds of the national total, or near 900 million tons, the same share before the reshuffle, said the spokesman.The current coal supply strain is temporary and regional, according to Huang.The heavy snow that has fallen since mid-January, the worst in 50 years in much of China, has paralyzed transportation, frozen the power grid and caused serious economic losses. Up to 17 provinces experienced blackouts in the snow-hit areas.Coal mines nationwide are urged to beef up production to ensure power coal supply in the disaster-hit regions.The government has also ordered the railway system giving top priority to power coal transport.Power supply and coal reserves continued to resume in China. Reserves of coal for power generation increased 800,000 tonnes to 25.2 million tonnes on Thursday, equaling 13 days' supply for the country's power plants, said the Disaster Relief and Emergency Command Center under the State Council on Friday night.