Ant capitulates, officials chip away at hukou barriers

The government is taking some further steps to boost labour market mobility by making it easier for migrants to settle and access healthcare in many of China’s cities. That will ease one constraint on productivity. Meanwhile though, the apparent capitulation of Ant Group – which has reportedly agreed to restructure as a financial holding company, with the much high regulatory burden that entails – is a reminder the raising productivity is not always the leadership’s primary concern.