"The new rules demonstrate China's respect for individual rights," said Wu Xianjiang, a professor at People's Public Security University.
For Chen Dong, a fresh graduate in Shenzhen, the new permit will be almost as good as a full hukou. After a year of work and rendering of insurance bills, he will gain access to most public services.
Shenzhen has issued such permits to more than 628,000 migrants since June, with banners hung across streets proclaiming "You have become a Shenzhener upon arrival."
Across the country, the new permits will also bring "seven conveniences" including passport issuing and automobile registration.
Liang Yong, a tour guide who has worked in Beijing for 15 years, said he will save a lot of time and money applying for or updating passports and identity cards. He has always had to go back to northeast China's Jilin to update his passport.
Liang even predicted the new rules will bring more customers for his overseas-travel business, as people will find it easier to apply for a passport or permit to visit Hong Kong, Taiwan and other countries.
HOPING ON A HUKOU
Migrants did not get quite all they may have hoped for. Even under the new system, they will lack privileges in terms of high school and higher education and low-cost housing.
Children of migrant parents will still have to go back to the distant towns in which their families are registered in order to participate in the national college entrance exam, though this policy has been abolished by some places such as Guangdong.
Moreover, the rules did not specify whether or not the permit gainers can buy houses in the large cities that have created restrictions on non-native buyers to curb rocketing house prices.
But a permit can be converted into a full hukou.
In smaller cities with a population under 1 million, residence permit holders can apply for a hukou if they have a stable job, house and render insurance bills for around three years.
This requirement is lifted to five years in cities with populations of 1 to 5 million.
For cities with more than 5 million people, the rules say they can come up with a more complicated "points" system for acquiring a hukou.
The Beijing government proposed such a system earlier this week, saying it would be based on employment, accommodation, educational background, skill level, tax payments and credit records.