The State Council said earlier this week restrictions on application for permanent residence in cities should be lifted for college and university graduates who sign labor contracts with local companies.

Meanwhile, the new "Hukou" policy or household registration system in Shanghai also attracted wide attention, stating that non-locals could apply for Shanghai residence with their residence permits. The policy, although not detailed yet, has drawn positive reactions from the public. The "Hukou" reform in Shanghai, the fourth of this kind since 1978, is predicted to start a chain effect nationwide.

An article on People's Daily Online applauds these decisions, saying the "Hukou" policy, which has a lot to do with employment, medical care and pension, is adapting to a changing society.

It says culture of household registration refers to the concept that has been greatly influenced by unequal social rights under the "Hukou" system. The gap in terms of economic development between big cities and small ones also results in a difference in social status.

The article notes that coastal cities with fast growing economies are usually regarded as the frontier of reform and opening up. It says "Opening up" should embody two levels of meaning: opening to the world and opening up to all Chinese. Opening to the world could help China seek more channels for development, while domestic opening up, which includes "Hukou" reform, could find more opportunities for cooperation.

The article concludes by saying it will be tough this year for these cities to continue to liberalize urban "Hukou" requirements, eliminate "Hukou" restrictions and remove structural barriers that are limiting the voices of rural residents.