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Welfare in China

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Welfare in China

Welfare in the People's Republic of China is linked to the hukou system of household registration. Those holding non-agricultural hukou status have access to a number of programs provided by the government, such as healthcare, employment, retirement pensions, housing, and education. While rural residents traditionally were expected to provide for themselves, in 2014, the Chinese Communist Party announced reforms aimed at providing rural citizens access to historically urban social programs.

Social assistance includes both monetary and health care benefits. Poverty reduction programs exist in parallel to social assistance; poverty reduction programs have separate administration and budgets.

Administration of social assistance in China is decentralized. The Ministry of Civil Affairs has overall responsibility for social assistance at the central level of government. The Ministry of Human Resources and Social Security (MOHRSS) Department of Pensions and Rural Social Insurance has general supervision over pension programs. The National Health Commission supervises medical providers. The National Healthcare Security Administration guides local governments on issues related to medical insurance and sickness and maternity insurance.

In the 1950s, China implemented social assistance for the Three Withouts (三无; sanwu), meaning without livelihood source, without the ability to work, and without family support. The Five Guarantee were also implemented in rural areas in the 1950s as a poverty reduction mechanism.

After Reform and Opening Up, China introduced other social assistance programs. These include dibao, a Minimum Livelihood Guarantee, which was implemented in Shanghai in 1993, expanded nationwide to urban areas by 1999, and expanded into rural regions in 2007.

Welfare reforms since the late 1990s have included unemployment insurance, medical insurance, workers' compensation insurance, maternity benefits, communal pension funds, individual pension accounts, universal health care.

Furthermore, for many of the minority groups, there are some benefits available.

In 2004, China experienced the greatest decrease in its poorest population since 1999. People with a per capita income of less than 668 renminbi (RMB; US$80.71) decreased by 2.9 million people or 10 percent; those with a per capita income of less than 924 RMB (US$111.64) decreased by 6.4 million people or 11.4 percent, according to statistics from the State Council's Poverty Reduction Office.

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