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Hukou

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A hukou is a residency permit issued in the People's Republic of China which officially identifies a person as a resident of an area. Although a valid residency permit technically required to live in an area, in practice the system has largely broken down, and there are an estimated 150 to 200 million Chinese who are living outside their official registered areas. Persons without a residency permit have much less access to education and governmental services, and occupy a social economic status similar to undocumented aliens.

Under the command economy in the PRC before the 1980's, a residency permit was required for any employment and to received food and other essential goods. With creation of Chinese market reforms, it became possible for some to unofficially migrate and get a job without a valid permit. Economic reforms also created pressures to encourage migration from the interior to the coast as well as providing incentives for officials not to enforce migration regulations.

Reforming the residency system has been a very controversial topic within the PRC. Although the current system is widely regarded within the PRC as unfair and inhumane, the main problem with liberalization is that there are fears that it would result in a massive influx to the cities which would stress already strained government services beyond the breaking point.