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CHINA’S SOCIAL WELFARE SYSTEM

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China’s Social Welfare System

Introduction

A social welfare system offers support to persons as well as households in need. The kind and

quantity of welfare obtainable by persons and families differ depending on the nation. The

system functions through programs, for instance, healthcare, childcare aid, compensation for

unemployment, and housing support, among others (Gencer, 2017). Various aspects surrounding

individuals' economic status and its relationship with the minimum acceptable levels in a specific

country determine the eligibility for social support. Gosta Esping-Anderson regarded the social

welfare system as a mechanism for correcting the structure of inequality. He saw it as a means of

intervention in social structures that promote inequality. Esping-Anderson also perceived the

system as a system of stratification in its own right. This write-up seeks to examine the extent to

which Esping-Anderson's perception can be applied to China's social system. It will also analyze

the factors that determine "who gets what and why" in China's social welfare system. 

Gosta Esping-Anderson's Perspective

           Esping-Anderson identified three kinds of welfare-state regimes, namely, social

democratic, conservative, and liberal systems. The three-fold typology is founded on the

engagement of three ideologies: social stratification, decommodification, as well as the relative

duty of the government, households, and market in the provision of welfare. The liberal model

entails the weakening of social rights (Gencer, 2017). There is a minimal provision of public

welfare. The poor in society are provided with aid programs associated with stigma. The rich

depend on bought insurance and social services. Stratification levels are high, while

decommodification levels are low. The leading provider of welfare is the market. The
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conservative model entails performative social rights. Benefits are dependent on a record of

employment as well as previous contributions. The principle of social insurance focuses on

equity as opposed to equality. The schemes for social protection are divided occupationally.

Families rely on male wage-earners; therefore, the social rights of women are derived (Wu,

2019). Levels of stratification, as well as the degree of decommodification, are medium. Family

is the primary provider of welfare. The social-democratic model is devoted to universal social

privileges. It promotes the employment of women and men. The regime has a high level of

decommodification and embraces solidarity. The state is the sole provider of welfare, and the

degree of stratification is low. 

Status of equality in China's social welfare system

           Esping-Anderson emphasized that the idea of social citizenship ought to comprise the

provision of social rights. Personal rights must not be affected by the market. China's system for

social security includes separate schemes for employed and resident-based unemployed persons.

Social rights target employees in the urban regions. Benefits derived from employment-based

structures are contributory (Gencer, 2017). The social policies are limited because they assume

labor market participation. The participation of employees without labor contracts is voluntary

and restricted. Benefits related to sickness and unemployment is only accessible to insured urban

dwellers. It means that workers in the rural areas are excluded. However, all citizens are covered

by the health insurance regardless of employment status and location of residence (Wu, 2019).

The social welfare system needs to be improved. Mismanagement and corruption have dogged

the system.
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Unfortunately, eighty percent of eligible families do not receive the rural minimum earnings. In

addition, sixty percent of the beneficiaries are not within the stipulated criteria. There is a

disparity in the retirement age for men and women. Men retire at 60 years while women retire at

50 years (Wu & Zheng, 2018). It is unreasonable because the life expectancy is approximately

75 years. Employees have lobbied for changes to be made but no policies have been formulated

so far. Rural workers are not eligible for unemployment insurance, which is unfair. The current

disparities in the system promote inequality. For this reason, Esping-Anderson's argument is

partially applicable to China's social welfare system. 

Stratification in China's social welfare system

           Social stratification refers to the structuring of social relationships based on class as well

as social order. Empirical indices of socialism, liberalism, and conservatism measure the impact

of stratification. Conservative stratification aims at maintaining the status as well as special

treatment of civil employees (Gencer, 2017). China's pension scheme is not segmented across

occupational groupings. It nullified the relative rights of China's public and civil servants.

Liberal stratification is captured through patterns in private spending for social relief as well as

health. China's social security system entails diverse social aid initiatives, for instance, the

Ministry of Labor Social Security (MSSL). The MSSLfunctions in both urban and rural regions

and the rural Five Guarantees System among others (Gencer, 2017). China spends about 0.42

percent of the sum of public social budget on social aid. Approximately 44 percent of China's

total expenses on health come from spending on private health. It implies that China puts

emphasis on private health spending as opposed to focusing on the provision of affordable

healthcare in public health facilities. Social-democratic stratification also known as universalism

can be captured through the identification of the portion of population covered under schemes
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such as health, pension as well as unemployment (Wu, 2019). In China, 75 percent of the sum of

adult populace is covered under social security schemes. Approximately 540 million persons

paid to the renewable portfolio standard (RPS). Programs for health insurance cover ninety-nine

percent of China's populace. However, the unemployment insurance (UI) covers only a quarter

of the urban workers. The above details reveal that stratification related to occupation and status

trends in China's social welfare system is small. In terms of liberal stratification, the system is

not keen on social relief (Wu & Zheng, 2018). The degree of universalism can be described as

medium as the UI covers only a segment of the employees. Generally, China's social welfare

system can be rated as medium in terms of stratification. Elements such as the absence of special

treatment of civil servants, UI covering only a segment of employee and an inclination to private

health spending makes one conclude that stratification is not high or low but medium. 

Factors that determine "who gets what and why"

           The elderly population receives a pension based on several factors. Beneficiaries are

required to have contributed to their wage for at least fifteen years. Men must meet the statutory

retirement age of 60 and 55 for females. Sick persons are entitled to health insurance only if an

individual has been contributing (Gencer, 2017). A person's work history, as well as seniority at

work, is also considered. Unemployed persons are eligible for the Unemployment Insurance that

covers every employed or unemployed person. Migrant employees are also beneficiaries of the

program. Rural workers do not qualify for the program. Generally, entitlements are based on

certain principles and conditions that must be adhered to by the beneficiaries. 

Conclusion
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           Medium levels of equality and stratification characterize China's social welfare system.

The system has certain aspects of Esping-Anderson's model. The system has some limitations,

which restrict the application of the model in specific dimensions. Issues such as urban residents

having more benefits as compared to rural residents and the fact that only a quarter of the

workforce is covered by health insurance are some of the limitations. China has made steps in

building its social welfare system. However, some gaps need to be filled to enable it to fit into

Esping-Anderson's model. 
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References

Gencer, H. (2017). How to Classify the Chinese Welfare State.

Wu, X. (2019). Inequality and social stratification in Postsocialist China. Annual Review of

Sociology, 45, 363-382.

Wu, X., & Zheng, B. (2018). Household registration, urban status attainment, and social

stratification in China. Research in Social Stratification and Mobility, 53, 40-49.