China’s Silicon Valley to migrant workers: No degree? No problem

Shenzhen has a message for its millions of migrant workers: you don’t have to be a college graduate or wealthy to become a permanent resident.

Under a new quota system, the boom town known as China’s Silicon Valley on the border with Hong Kong will grant 10,000 migrant workers full residency this year and all the social welfare benefits that come with it.

The new approach could push smaller Chinese cities to adopt similar measures as they compete for labour.

Previously, Shenzhen only targeted those with advanced degrees or technical expertise, or those in higher tax brackets, which left most of its inhabitants on the sidelines.

But the quota for migrant workers is aimed at dramatically lowering the barrier to entry. Applicants must be employed, have made contributions to local social security funds for at least five years, and either own a flat or be renting one.

Those with a longer property history have a better chance, with one point awarded for each month of flat ownership and a fifth of a point for each month of tenancy.