China's All-Out Effort to Revive Economy... This Time, Hukou and Entry Visa Relaxation

Indication of Hukou System Relaxation... Lowering Urban Entry Barriers
Exemption from Passport Submission When Applying for Residence Permit

China has decided to revise the Hukou (household registration) system and ease foreign entry visa regulations to stimulate its sluggish economy. While the Ministry of Commerce and other economic sectors have led efforts to boost the economy, the Ministry of Public Security and the Ministry of Foreign Affairs have now joined forces for an all-out campaign.

According to local media including Xinhua News Agency on the 3rd, the Ministry of Public Security announced "26 measures to ensure the development of quality services," stating, "We will actively promote people-centered new urbanization and seek Hukou integration." It further explained, "To implement flexible urban settlement, we will provide convenience for businesspeople applying for or renewing visas in China and explore reforms such as exempting passport retention during residence applications."

China's Hukou system is a unique household registration system that certifies identity and residence, and people from rural areas cannot obtain Hukou in major cities like Beijing or Shanghai. This directly affects real estate acquisition and school enrollment, making it difficult for Nongmingong (rural migrant workers who move to cities for jobs) to settle in urban areas. Although specific measures were not disclosed on this day, it is interpreted as an intention to lower these entry barriers.

The Hong Kong South China Morning Post (SCMP) described this as "part of a broad policy adjustment in recent weeks," evaluating it as "China's comprehensive effort to further solidify the world's second-largest economy." It added, "Relaxing the Hukou system is intended to help secure supply chains and create jobs," and explained, "Especially to facilitate easier access to various government services in the Guangdong-Hong Kong-Macao Greater Bay Area."

Moves to significantly improve administrative convenience related to entry visas have also been detected. The Ministry of Foreign Affairs plans to make it easier for overseas business travelers visiting China for business meetings, exhibitions, investment consultations, and the like to obtain visas. Frequent visitors can be issued multiple-entry visas valid for up to three years. A representative of the China National Immigration Administration stated, "Changes are urgent for stable industries and supply chains," adding, "This will help domestic companies secure opportunities and orders, expand into international markets, and gain an advantage in the new industrial revolution."

Additionally, the National Immigration Administration explained that there will no longer be a need to submit passports when applying for residence permits in China, benefiting at least 700,000 overseas visitors.

This move has elicited positive responses. Jens Eskeland, Chairman of the European Union Chamber of Commerce in China, called the new visa regulations "a welcome step in the right direction," saying, "If implemented timely, it will resolve some inefficiencies experienced by the foreign business community." However, he emphasized, "These measures alone are not sufficient to restore business travel to pre-pandemic levels or to restore China's attractiveness as a destination for foreign talent," adding, "Issues in the business environment, including lack of transparency and predictability in Chinese policies, must be addressed."