China’s Social Protection System and Reform

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ID: 314298
2026
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Abstract
Abstract Accompanying its transition to a market economy, China established a social protection system at the beginning of the 21st century, which consists of multiple layers targeting different societal groups. Social assistance, including subsistence allowance, health assistance, and poverty-alleviation programs, aims to provide a minimum living standard for the lowest-income households. Social insurance, which comprises old-age pensions, health, unemployment, and work-injury insurance, is to counteract individuals’ income loss due to aging, sickness, unemployment, and work injury, providing a basic safety net for the middle class. In addition, the government encourages private investment in care provision and commercial insurance to supplement the government-run social assistance and insurance. This multilayer protection system embeds social stratification and inequality; its financing and implementation are mainly decentralized to local governments. Several reforms have been conducted to remedy problems such as the urban-rural gap, regional disparity, and resource disorganization in social service and welfare provision. China’s social protection system is at a crossroads, facing prominent challenges from its political economy and an aging population. This chapter critically reviews China’s social protection system and its reforms since 2003, focusing on the distributive outcome and implications.
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openalex_W7161972838 Use this key to autocite in the manuscript while using SciMatic Manuscript Manager or Thesis Manager
Authors Xian Huang
Journal Oxford University Press eBooks
Year 2026
DOI
10.1093/oxfordhb/9780197761465.013.0002
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