The household registration (hukou) system has been widely recognized as a key contributory factor to social inequality and tensions in China yet it remains intact despite a series of institutional reforms. What explains the resilience of the system? In this study, we address this puzzle by drawing on policy documents, statistical data and interviews. We argue that the hukou system remains because it is used to protect the beneficiaries of welfare provision and to ensure pivotal groups continue to offer political support. We find that owing to the reforms, a formidable barrier has been erected between the guarded cities and other regions to protect healthcare and education resources from inbound migrant workers. Consequently, the institutional reforms of the hukou system serve as a political contrivance for the survival of the Chinese party-state regime. The findings contribute to emerging literature on China's political control by elaborating political elites’ subtle tactics through various institutions at central and local levels. We expect the new “Great Wall” established under Xi's administration to be an even stronger barrier than before for migrants during the current pandemic and in the future.