Why are migrant kids still kicked out of schools - Zhang Lijia

+Lijia Zhang 

The central government might be trying to heal some of the wrongs related to hukou´s, like migrant children not allowed to attend schools in cities. But reality is still harsh, tells author Zhang Lijia in the South China Morning Post, as her neighbor´s kid is forced to leave.

Zhang Lijia:

The start of a new school year should be a joyful time. Instead, in Beijing, it has heralded tears and painful family separations: the children of migrant workers who failed to secure a place at a local school have been forced to leave. 

The family of my neighbour, Mr Ma, a self-employed electrician, is among those affected. His wife has just taken their seven-year-old daughter, Qiuyu, and her visiting brother, Xiaobao, back to their home village outside Datong , in central Shanxi province. 

Qiuyu had been at home for nine months, after her private unlicensed kindergarten run by a fellow migrant was shut down by the authorities who said it lacked safety measures. My neighbourhood in Jiuxianqiao village is populated by migrant workers. In recent months, the Mas visited dozens of primary schools in the area. All migrant schools seem to have closed and all state schools demanded five documents, including a temporary resident permit, rental contract and proof of employment. Mr Ma had none of them.

Mrs Ma had decided to leave her husband and go back to her home village.

It's clear that the government has not done nearly enough. Perhaps the authorities' wish to maintain stability means they seek to prevent thousands of farmers rushing to the city. Perhaps our leaders do not fully realise the negative long-term effects on the left-behind children. If their problems persist into adulthood, how can we expect to build a "harmonious society"? 

The government needs to take urgent action. It should offer financial incentives to local schools that take in migrant children or simply set quotas. Given that local schools cannot accommodate all the children, schools for children of migrant workers should be given legal status. Instead of simply shutting down substandard schools, authorities should offer support. And finally, the hukou system must be abolished. 

Back in my neighbourhood, an air of sadness hangs over Mr Ma and his home; outside, where the family had spent many happy hours, little Qiuyu's bike now stands forlornly.

More in the South China Morning Post.

Zhang Lijia is a speaker at the China Speakers Bureau. Do you need her at your meeting or conference? Do get in touch or fill in our speakers´ request form.

Are you interested in more stories by Zhang Lijia? Check our regularly updated list here. 

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Will China´s consumers keep on spending? - Sara Hsu

+Sara Hsu 

China´s central government tries to shift its economy from investment-driven to a consumer-drive one. While the effort seems to have effect, financial analyst Sara Hsu points at a few bears at this road in the Diplomat. Will the consumers keep on spending more? It´s in the hand of the government itself.

Sara Hsu:

First, the crackdown on official purchases of luxury goods has taken a toll on consumption. Diageo, a drinks maker, reported a $444 million decline in sales in the fiscal year ending June 30. Most of this decline reflected a sharp reduction in demand for its popular white liquor, baijiu, through its subsidiary company Shui Jing Fang. Diageo is one of many luxury goods companies that has been adversely impacted by China’s anti-corruption campaign. At the same time, China’s mainstream consumers are increasingly aware of, and interested in purchasing, luxury brands. While the anti-corruption campaign has made a dent in luxury spending in the short run, in the long term high-end consumption is unlikely to be affected.

Second, the construction of retail centers that remain empty has occurred in recent years, as lack of growth sources from other sectors prompted government officials to allow a stark increase in fixed asset investment, including real estate development. Many owners of these shopping areas will likely experience heavy losses, as they fail to attract either stores or shoppers. Despite this problem, consumption in hot spots throughout China remains strong. The trend in consumer preferences for shopping locations changes, and has not negated the overall upward movement in consumption numbers.

Real threats to increasing consumption in the long run do exist, however, and have to do with the rate of hukou, or household registration, reform, and the urbanization process itself. The hukou process has long prevented rural residents from permanently moving to urban areas, and the leadership has vowed to reduce hukou restrictions for some. The extent to which this policy is carried out will greatly impact the sustainability of the consumption trend: the rural sector remains relatively worse off than the urban sector, and the hukou remains the biggest formal barrier against urbanization and the associated increase in living standards. Closely related is the urbanization process, which has focused on physically moving individuals to urban areas without ensuring appropriate job creation. By implementing urbanization policies in a superficial way, some regions have raised living standards in the short run without creating the means to sustain it in the long run.

The tide of consumer spending is growing in force, and the leadership does not want to see it end. While the current lag in luxury spending and real estate occupancy may be temporary, serious barriers to building a consumer society remain. Ironically, these barriers are in the hands of the government itself. The policies that are implemented, and the order in which they are carried out, will determine if the ultimate goal of raising and maintaining consumption can be achieved.

More in the Diplomat.

Sara Hsu is a speaker at the China Speakers Bureau. Do you need her at your meeting or conference? Do get in touch or fill in our speakers´request form.

Are you interested in more financial experts at the China Speakers Bureau? Do check out our recent list.