Assuming that the government can establish an enforceable baseline standard for wages and conditions -- a big if -- a formal work visa program might actually make China the destination of choice for Southeast Asia’s massive population of migrant laborers, most of whom work illegally in places such as Malaysia and Thailand. That would be a big advantage -- Chinese companies would have their pick of labor -- as Chinese factories increasingly compete against those in Southeast Asia. As factories grow more automated and the need for unskilled labor declines, the program could be expanded to service workers, from waiters to nurses.
Like any largely homogenous country, China will struggle mightily with the idea of accepting a large influx of foreigners. But the relative tolerance with which expatriates and foreign workers appear to be treated currently suggests that at least some degree of formal immigration is possible. What the government needs to do first, though, is begin explaining to citizens why such a move might become necessary. That kind of education and outreach could one day be as important to China’s future as abolishing the hated one-child policy.