In recent years, China has instituted a variety of reforms to its hukou system, an institution with the power to restrict population mobility and access to state-sponsored benefits for the majority of China's rural population. A wave of newspaper stories published in late 2005 understood the latest round of reform initiatives to suggest that the hukou is set to be abolished, and that rural residents will soon be “granted urban rights.” This article clarifies the basic operations of the hukou system in light of recent reforms to examine the validity of these claims. We point out that confusion over the functional operations of the hukou system and the nuances of the hukou lexicon have contributed to the overstated interpretation of the initiative. The cumulative effect of these reforms is not abolition of the hukou, but devolution of responsibility for hukou policies to local governments, which in many cases actually makes permanent migration of peasants to cities harder than before. At the broader level, the hukou system, as a major divide between the rural and urban population, remains potent and intact.

Until recently, few people in mainland China would dispute the significance of the hukou (household registration) system in affecting their lives – indeed, in determining their fates. At the macro level, the centrality of this system has led some to argue that the industrialization strategy and the hukou system were the crucial organic parts of the Maoist model: the strategy could not have been implemented without the system. A number of China scholars in the West, notably Christiansen, Chan, Cheng and Seiden, Solinger, and Mallee, have begun in recent years to study this important subject in relation to population mobility and its social and economic ramifications. Unlike population registration systems in many other countries, the Chinese system was designed not merely to provide population statistics and identify personal status, but also directly to regulate population distribution and serve many other important objectives desired by the state. In fact, the hukou system is one of the major tools of social control employed by the state. Its functions go far beyond simply controlling population mobility.

China's urbanization patterns and policies since 1949 have been the focus of a good deal of attention. The main elements of this “Chinese Model” have been the massive “rustication” movements, the recruitment of large numbers of city dwellers to work in rural areas, strict controls on rural-urban migration through food rationing and household registration, and the expansion of rural employment through the development of rural industries. While controlling urban population growth has been problematic to most governments of developing countries, it has been widely accepted that China, particularly in the Maoist era, has been successful in this sphere. The “Chinese Model”, therefore, may offer such countries great promise as an alternative approach.