Professor CHEN Zhao started by stating that the Hukou system(household registration) ran beyond the economic arena, and many issues related to Hukou were not economic issues that could be solved by economists.
He then illustrated that there were several issues related to the reform the Hukou system, such as the credit mechanism where people earn their credits in order to gain their rights to residing in urban areas; and the cost of urbanisation shouldered by urban residents. Professor CHEN Zhao also talked about other issues related to Hukou system, such as the education of the migrant workers’ children; the social stability and conflicts; the distribution of wealth; and urban employment, etc..
In the comments, Professor MU Guangzong claimed the the Hukou system was an out-dated affiliated policy of the traditional national control, a form of rule of man, instead of rule of law. This system has led to countless social issues, and great inequity. Professor ZHANG Zhanxian thought the biggest challenge to the reform of Hukou system was the several big cities, such as Beijing, Shanghai, and Guangzhou, that were going against the right reform direction. Professor SHENG Hong thought the essence of the obstacles for Hukou reform was the unfair distribution and wealth and resource allocation, especially in resource concentrated cities.