China to walk fine line between sustaining growth, pension system
China is attempting to walk a fine line between lowering corporate burdens to boost economic growth and making the country’s pension scheme more sustainable amid an aging population.
In its latest step, the government vowed to roll out a nationwide pilot program announced in 2017 that transfers stakes in state-owned firms to social security funds.
This comes as the 2-trillion-yuan (about 291.55 billion U.S. dollars) reduction of tax burdens and social insurance contributions of enterprises helped lower corporate burdens but raised concerns over the sustainability of the country’s pension system.
The government lowered the share borne by employers for urban workers’ basic age-care insurance down to 16 percent starting from May 1, with other policies on improving social security benefits being intensively introduced, said You Jun, vice minister of human resources and social security.
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