Götterdämmerung
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Whatever is the intention of Hukou system, its other thing. Kindly look at the Data from Economist Magazine based on UN-Habitat, even without Hukou System India and China had almost same percentage of Urban Slum Dwellers. And India was able to uplift more people out of Slums to better Housings since 1991 Economic reforms. You don't need such discriminatory laws to do such thing. Also, cities like Bangalore went Massive expansion in last 20yrs but still Slums are rarely seen in Bangalore.
And rural person working hard to enrich the economy of Megacities like Shanghai or Shenzen could not send his Children to school in the cities because the Child is born to a rural person. This is indeed Apartheid and Segregation. A person can't study in certain school because he/she is a rural person. Also, in Indian law says that every Indian has all rights to work in anyplace in the country and have right to enjoy all facilities.
What are the parameters of the Economics statistics? Sure, all my protagonist of my documentary were in Shanghai, I saw and filmed their living conditions. All of them were construction workers, some with their family in Shanghai, some left their children taken care by the grand parents in the home village. Migrant workers without family mostly lived in dorms on the construction site that were clean, and sometimes even air condition. They have proper toilets, shower places, electricity and a canteen provided by the employer. Migrant workers coming with their family IMO have worse living conditions, as they mostly have to rent a run down and crowded place, mostly in a redevelopment zone, where the landlords don't invest a cent into the houses anymore, as that house will be gone within a short time anyway. But even these run down houses were once nice and sometimes even beautiful and have all the amenities of a city home.
Sure, I wouldn't want to live in any of these houses, unless I can shove all the migrant workes out and renovate it to the old style and modernise it with all the latest gadgets.
Shanghai is one of the first cities that abolished the hukou attachement for eduction of migrant children. Before the abolishment, many migrant workers started their own schools in Shanghai that is partly funded by themself and partly by donation of wealthy Chinese. Only the schoolbooks were given for free by the city of Shanghai.
Segragation and apartheid is permanent for all generation of the past and in the future. Rural Chinese can improve that situation within a generation, that's why they work their butt off to give their children the opportunity to study. The hundreds of millions of new urban Chinese is the proof of the non-existence of apartheid in China.