more distant areas were named Xiang () and Sui (). Families were organized under the Baojia system. Guan Zhong, Prime Minister of the Qi state 7th century BCE, imposed different taxation and conscription policies on different areas. In addition, Guan Zhong also banned immigration, emigration, and separation of families without permission. In the Book of Lord Shang, Shang Yang also described his policy restricting immigrations and emigrations. Xiao He, the first Chancellor of the Han Dynasty, added the chapter of Hu (, "Households Code") as one of the nine basic law codes of Han (), and established the hukou system as the basis of tax revenue and conscription. The first formal codification of the hukou system arose at the end of the Qing Dynasty (1644-1912) with the 1911 Huji Law. Although movement was nominally free under this statute, registration of individuals with the government was required, and it was used by the government to pursue communist forces and as a basis for taxation for the funding of wars. The law also expanded upon the baojia system, and was intended to establish a sense of stability. In the period following the fall of the Qing Dynasty, China was ruled by various actors, each of which employed some system of household or personal identification. During the Japanese occupation, the Japanese employed a system used to identify those under their rule and to fund their war effort. Similarly, the Kuomintang utilized the system to monitor the activities of their opponents, the Chinese Communist Party, and the Chinese Communist Party in turn used a system called lianbao, which bundled families into groups of five to aid tracking and impede counterrevolutionaries. 1949-1978: Maoist era At the time of its founding in 1949, the People's Republic of China was a highly agricultural nation. About 89% of its citizens lived in rural areas – about 484 million resided in the countryside, versus about 58 million in the city. However, as efforts to industrialize increased and Soviet help (156 projects), more and more rural residents flocked to the cities in search of better economic opportunities: between 1957 and 1960, there was a 90.9% increase in the urban labor force. A major objective of the hukou system implemented by the central government was thus to control the stream of resources moving away from the agricultural sector. The instability and high rates of movement that characterized the years following the