Both celebrated and criticized, China’s social security system offers various types of welfare and support to locals and expats alike. However, the system is still in development. The taxation system, on the other hand, is fully-developed but quite overwhelming. Luckily, we cover both topics at length.
China’s social security system is relatively new and many parts of it are still in development. Initially, the system was only accessible to urban workers and subsequently rolled out further to cover employees in rural areas as well. As of October 2011, expats are also included in the system. Still, the system is not easy to navigate and variables and contributions vary strongly by locality and sector. Moreover, as it is often difficult to tell whether a certain policy is managed on a local or on a federal level, finding the person responsible for answering your questions can be quite a challenge. Thus, only a good third of foreigners have joined China’s welfare system.