China is in the midst of restructuring its social security net, which is to tackle social problems in unemployment insurance, old-age pension and health insurance, on its way towards a market-based economy. This paper is to examine the evolution and development of social policy and social protection in China. It begins with an introduction to historical basis of China's social security system. It then explores the reform practice of China's social security system, and traces challenges faced by China's social security reform. This is followed by discussions for restructuring China's social security net in a market-based economy, including policy recommendation on development of old-age insurance, unemployment insurance and health insurance. The paper concludes with the strong point for the increasing urgency to improve the legal situation of China's social security system.
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