China's urban and rural areas have reported greater ease of movement by people and resources nationwide, a report showed on Monday.

The report on building systems to better integrate urban and rural development was submitted to the ongoing session of the Standing Committee of the National People's Congress for deliberation.

According to the report, restrictions on household registration, or hukou, have been largely lifted in cities with permanent urban populations of fewer than 3 million. Cities with populations between 3 million and 5 million have further relaxed settlement requirements, while megacities have continued to optimize points-based residency policies.

China has also stepped-up efforts to develop human resources in rural areas, with nearly 5 million people trained as high-quality professional farmers, more than 250,000 rural practical talents fostered as local leaders, and over 14.3 million people returning to their hometowns to start businesses, the report said.

Meanwhile, connectivity between urban and rural infrastructure continues to improve. More than two-thirds of provincial regions have achieved expressway access to all counties, while all eligible townships and administrative villages are now connected by paved roads and bus services.

The rural tap water penetration rate has reached 94 percent, while large-scale water supply projects now cover about 65 percent of the rural population, according to the report.

Digital infrastructure has also expanded, with more than 90 percent having access to 5G networks.

In addition, express delivery services cover over 95 percent of villages, the report said.

Progress has also been reported in the improvement of rural living conditions as more than 90 percent of villages now have systems in place for household waste collection, township-level transfers and county-level disposal.

China has built about 15,000 school communities between urban and rural areas and routinely implemented regular exchanges and rotation of principals and teachers within counties.

In the healthcare sector, 2,199 county-level regions nationwide have established closely linked medical consortiums. County hospitals are increasingly dispatching medical staff to townships and village health centers for long-term assignments, the report said.

Meanwhile, challenges remain as county-level industries that help boost rural incomes are not sufficiently developed, limiting the role of counties as the basic units for advancing urban-rural integration, the report said, adding that balanced allocation of public resources is needed to ensure further improvements.

In cities experiencing rapid population inflows, shortages have emerged in key public services, including public schools and access to public rental housing.

Moreover, efforts to sustain steady and faster income growth for farmers continue to face pressures, the report said.