Restrictions on residence registration will be completely lifted for cities with a residential population of less than 3 million in urban areas, according to a guideline jointly issued by the General Office of the Central Committee of Communist Party of China and the General Office of the State Council.

The guideline has been issued to step up reform and improve social mobility of labor force and talents, thereby supporting the country's sustained economic growth. It calls for generating high-quality opportunities and encouraging innovation and entrepreneurship.

In addition, conditions for residential settlement will be relaxed for large cities having a residential population of 3-5 million in urban areas. The settlement policies for mega cities with a residential population of above 5 million in urban areas will also be improved, the guideline said.

More efforts will be made to influence regional mobility via household registration system and public services, said the guideline.

China's household registration system is called "hukou." It not only includes identifying information, but also connects with social welfare services based on a person's birthplace.

Read more: How China's Hukou reform stimulates talent dividends

In early April, China's National Development and Reform Commission adopted a policy to relax the existing residency restrictions and encourage rural citizens to move to the cities.

Local governments initiated a "war for talents" in early 2019. Hangzhou in east China's Zhejiang Province, Shijiangzhuang in central China's Hebei Province, and Xi'an in northwest China's Shaanxi Province announced moves to attract more migrants with college and post-graduate education.

(With input from Xinhua)