Will China’s residency changes to social insurance unlock economic growth?

In China, social insurance costs are shared among employers, employees, and the government, depending on the coverage type.

In the past, many employees could not qualify for social insurance programmes and their benefits – such as pensions and medical coverage – because their household was registered in another jurisdiction.

Peng Peng, executive chairman of the Guangdong Society of Reform think tank, said the nationwide change would have widespread effects, from promoting urbanisation and the real estate market, to helping establish a national market and even releasing some consumer spending power.