The Economic Reform and the Formation of the Social Safety Network in Contemporary China

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With the Chinese transformation from the planned economy to the market economy the urban DANWEI system, which provided the employees of state-owned enterprises not only with a life-time employment but also with various kind of welfare and security has been destroyed and the labor market has been emerging. The Chinese Government has been retreating from planning and controlling the economy and, instead, launching on building up of a new social safety network in place of DANWEI system. This research project studied the features and problems of this network, with a special focus on the emerging three social systems, that is, the labor market system, the modern fiscal system and the social security systems.