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¡¡¡¡Initially, China's basic old-age insurance covered only State-owned enterprises and collectively-owned enterprises in urban areas and their employees. In 1999, this coverage was expanded to include foreign-invested enterprises, private enterprises and other types of enterprises in urban areas, as well as their employees. In 2002 China expanded its basic old-age insurance coverage to all those who were employed in a flexible manner in urban areas. In 2003, the number of people participating in the basic old-age insurance scheme across China reached 155.06 million, 116.46 million of whom were employees.

¡¡¡¡The State has called upon governments at all levels to increase the momentum of restructuring their financial expenditure and raise their input into social security. In 2003, State budgets at all levels contributed 54.4 billion yuan (US$6.55 billion) toward basic old-age insurance funds, of which 47.4 billion yuan (US$5.71 billion) came from the central budget.

¡¡¡¡In 2000, the Chinese Government decided to create a national social security fund. The national social security fund provides an important financial reserve for the implementation of old-age insurance and other social security programmes. By the end of 2003, it had accumulated over 130 billion yuan (US$15.66 billion).

¡¡¡¡Unemployment insurance

¡¡¡¡The Chinese Government is speeding up the development and improvement of an unemployment insurance system to guarantee the basic livelihood of employees after losing their jobs, to help them find new jobs, and accelerate the combination of the basic livelihood guarantee system for people laid off from State-owned enterprises with unemployment insurance. By the end of 2003, there were 103.73 million people who participated in the unemployment insurance scheme, which provided unemployment insurance benefits of varying time limits to 7.42 million laid-off employees throughout the year.

¡¡¡¡While guaranteeing the basic livelihood of the unemployed, the State actively looks for effective ways to steer unemployment insurance in the direction of promoting re-employment.

¡¡¡¡Since 1998, the Chinese Government has put into operation a system that provides for three guarantees: basic livelihood guarantee for laid-off persons from State-owned enterprises, unemployment insurance guarantee and minimum living standard guarantee for urban residents.

¡¡¡¡With the steady improvement of the unemployment insurance system and the increase of fund accumulations, since 2001, the basic livelihood guarantee system for laid-offs from State-owned enterprises has been integrated with the unemployment insurance programme. State-owned enterprises now have ceased to establish any new re-employment service centres, and, in principle, people newly laid off by enterprises have also ceased to register at such centres. Instead, enterprises just terminate their labour contracts according to law, and the laid-off persons will then be entitled to unemployment insurance benefits according to relevant regulations.

¡¡¡¡Medical Insurance

¡¡¡¡In 1998, on the basis of previous trials, the Chinese Government promulgated the "Decision on Establishing a Basic Medical Insurance System for Urban Employees," promoting a national reform of the basic medical insurance system for urban employees. By the end of 2003, some 109.02 million people around China had participated in the basic medical insurance programme, including 79.75 million employees and 29.27 million retirees.

¡¡¡¡To standardize medical services and reduce costs, the State simultaneously promotes the reform of the basic medical insurance system, medical and healthcare system, and pharmaceuticals production and circulation system.

¡¡¡¡Efforts have been made to ensure the insured enjoy necessary medical services, to curb unreasonable medical expenses, and to enhance the utilization efficiency of the basic medical insurance fund.

¡¡¡¡Insurance for work-related injuries

¡¡¡¡The Chinese Government has made great efforts to establish an insurance system for work-related injuries that includes work-related injury prevention, compensation and recovery. After January 2004, when the "Regulations on Insurance for Work-related Injuries" went into effect, the coverage of such insurance has expanded rapidly. By the end of June 2004, as many as 49.96 million employees had underwritten this insurance scheme.

¡¡¡¡The State stipulates that all enterprises and all individual businesses engaged in industry and commerce with employees must participate in work-related injury insurance, and pay insurance premiums for all their employees, permanent as well as temporary. The individual employees do not pay such premiums.

¡¡¡¡Maternity Insurance

¡¡¡¡In 1988, the State introduced a reform of the maternity insurance system in some areas. At the end of 2003, there were 36.55 million employees covered by maternity insurance. In the year of 2003, 360,000 employees received maternity insurance benefits.

¡¡¡¡The maternity insurance system mainly covers urban enterprises and their employees, and in some places, women employees of government agencies, public institutions, mass organizations and enterprises. The premiums are paid by the employers participating in the maternity insurance scheme, and should not be more than one per cent of the total wage bill. Individual employees do not pay the premiums. Employers not having participated in the scheme will still be responsible for providing maternity insurance benefits. Employees giving birth to babies may enjoy a childbirth allowance for 90 days according to law. Women employees who have given birth to babies or had abortions shall maintain their original wages and positions, and get reimbursements for their medical expenses according to related regulations.

¡¡¡¡Social welfare

¡¡¡¡The Chinese Government actively promotes the development of social welfare, raising funds through various channels to provide social welfare benefits for the elderly, orphans and the disabled.

¡¡¡¡The "Law of the People's Republic of China on the Protection of Disabled People" promulgated by the State provides legal guarantees for disabled people's rehabilitation, education, employment, cultural life and social welfare. By the end of 2003, a total of over 4.03 million disabled people in urban areas around China were in employment, and 16.85 million disabled people in rural areas were engaged in productive labour; 2.59 million impoverished disabled people enjoyed guarantees for their livelihood; 442,000 disabled people enjoyed concentrated support and the "five guarantees" (of food, clothing, medicare, housing and burial expenses) in various welfare institutions and homes for the aged; 2.46 million disabled people were receiving temporary aid, regular allowances and special allowances; and over 7.01 million impoverished disabled people were receiving assistance for basic food and clothing. In 2003, governments at all levels earmarked 1.5 billion yuan (US$181 million) for services for the disabled, and raised nearly 100 million yuan (US$12 million) for social welfare funds.

¡¡¡¡Special care and placement

¡¡¡¡The special care and placement system is one by which the Chinese Government provides materials and expresses compassion mainly for servicemen and their families. At present, such people number over 40 million.

¡¡¡¡To protect the rights and interests of people eligible for special care, the Chinese Government has promulgated the "Regulations on Commending Revolutionary Martyrs," "Regulations on Special Care and Preferential Treatment for Servicemen," and similar laws and regulations.

¡¡¡¡Social relief

¡¡¡¡Proceeding from the situation of national development, the Chinese Government has made the greatest effort to provide the minimum standard of living for the urban and rural poor, to provide relief to natural disaster victims and to urban vagrants and beggars, while promoting and encouraging all kinds of social mutual help activities.

¡¡¡¡On August 1, 2003, the State promulgated the "Measures for the Administration of Relief for Vagrants and Beggars Without Assured Living Sources in Cities." Based on the principle of "receiving aid of one's own free will, and giving help gratis," relief for vagrants and beggars who have no assured living sources in cities should be administered with compassion. The relief should be provided in accordance with the different circumstances and needs of the recipients, so that they can receive relief in terms of food, lodging, medicare, communications, transportation to their hometowns and escort. By the end of 2003, some 909 such relief administrative centres had been set up throughout the country, offering help to 210,000 cases of urban vagrants and beggars who had no assured living sources that year.

¡¡¡¡Housing security

¡¡¡¡The Chinese Government actively promotes the development of an urban housing security system which includes mainly the system of publicly accumulated housing funds, the system of generally affordable and functional housing, and the low-rent housing system for the purpose of unremittingly improving urban residents' housing conditions. By the end of 2003, the average floor space had reached 23.7 sq m per capita for urban residents.

¡¡¡¡Since 1998, the Chinese Government has made active efforts to promote the low-rent housing system and to continuously improve housing security policies. For households whose incomes and housing space are below the standards set by the local government, the latter should ensure that their basic housing needs are met by application, registration and waiting one's turn. In 2003, this low-rent housing system for minimum-income families was established in 35 large and medium-sized cities.

¡¡¡¡Social security in rural areas

¡¡¡¡The majority of the Chinese live in rural areas, where the economic development level is comparatively low. In accordance with the characteristics of rural socio-economic development, the State's social security measures in rural areas are different from those practised in cities.

¡¡¡¡The old-age security in China's rural areas is centred mostly on families. In the 1990s, China began to try out an old-age insurance system in some of the rural areas in accordance with the actual level of local socio-economic development. By the end of 2003, the work of old-age social insurance had been carried out to various extents in the rural areas of 1,870 counties (cities, districts). Some 54.28 million people had underwritten the old-age insurance programme, which had accumulated a fund running to 25.9 billion yuan (US$3.12 billion), with 1.98 million farmers drawing old-age pension.

¡¡¡¡In 2004, the Chinese Government began to experiment with a system that supports and rewards households that practise family planning by having only one child or two girls in some of the rural areas. Each person of such couples may receive a minimum of 600 yuan (US$72) a year from the age of 60 till the end of his or her life. This reward will be provided jointly by the central and local governments.

¡¡¡¡In order to guarantee that farmers' basic medical needs are satisfied, to alleviate their medical burdens and to address the problem of poverty caused by illness or prevent them from getting poor again because of illness, the Chinese Government began to set up a new rural co-operative medical service system based mainly on a financial-pool-against-serious-disease scheme.

¡¡¡¡Farmers can participate freely in such a co-operative medical system in 2002, which is organized, led and supported by the government with funds coming from the government, collectives and the beneficiaries. At present, the system is being tried out in 310 counties (cities) in 30 provinces, autonomous regions and municipalities directly under the Central Government.

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