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1、AnalysisoftheSocialSecurityofChinaSinceChinaembarkedonfull-fledgedreformsandmarketopeningin1978,themarketeconomyhasrapidlydeveloped,whilesocialsecurityreformshavealsobeenadvanced.Thegovernmentispushingaheadwithsocialsecurityreformsasakeycomponentoftheeconomicreforms.PresidentHuJintaovowedo
2、nSundaytocontinuouslyenhancesocialsecurityandimprovepeople'swell-being.HemadetheremarkswhileattendingagroupmeetingwithpoliticaladvisersfromthefieldsofhealthandsocialsecurityattheongoingannualsessionoftheChinesePeople'sPoliticalConsultativeConferenceNationalCommittee."Thegovernmenthastoplay
3、adominantroleintryingtoaddresskeyissuesdirectlyconcerningpublicinterestsandtobetterintroduceandguidesocialforces,"Husaid. Regardingsocialsecurity,hesaidthecountryshouldspeedupthebuildingofasystemtocoverpeopleinruralandurbanareasinaspectssuchasinsuranceprograms,socialwelfare,andoldagecare.C
4、hina’ssocialsecuritysystemincludesnotonlyvarioustypesofsocialinsurance,butalsosocialreliefandwelfareforthedisadvantaged,thedisabled,andnaturaldisastervictims.Thesocialsecuritysystemwascreatedbythelaborinsuranceregulationof1951,andconsistedofpensioninsurance,medicalinsurance,mortalityinsura
5、nce,maternityandchildcareinsurance,naturaldisasterinsurance,andfamilyinsurance.Initially,thesystemwasfundedsolelybycompanies,andnocontributionsweremadebystaffandworkers.Companiespaidinpremiumsequivalentto3%oftotalwageseverymonth.Ofthisamount,30%wasallocatedtothelaborinsurancegeneralfundoft
6、heAll-ChinaFederationofTradeUnions.Theremaining70%wenttothelaborinsurancefundofthelaborunionatthecompany,andwasusedtofundpensions,medicalanddisasterreliefsubsidies,funeralsubsidies,andsoforth.Fundshortageswerefinancedbyahigherlevelofthelaborunion(cityorprovincelevel).Inthisway,thesocialsec
7、uritysystemhadauniformnationwidesystemofcollectingpremiumsandpayingoutbenefits.However,withtheboomingeconomyandtheremarkableimprovementofpeople’slive,theformersocialsecuritysystembecameamajorobstacletotheongoingreform.Thustherewasnochoicebuttoreformtheoldsyste
