China's New Social Security Policy Sparks Online Debate: Reforming Pension System and Drawing Lessons from Taiwan's Experience

Keywords: China's social security, pension reform, Tsai Ing-wen, new social security policy, online debate, Taiwan's experience
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Saturday, 09 August 2025
China has strictly enforced the mandatory participation in social insurance policy since September 1, sparking online debate. Some netizens used Taiwan as an example, pointing out the pension reform during the tenure of former President Tsai Ing-wen, and argued that China should also consider reforming the welfare of people within the system, rather than increasing the burden on ordinary citizens and small businesses during economic downturns. Judicial interpretations issued by China's Supreme People's Court clearly state that any private agreement between employees and employers regarding 'not paying social insurance' is invalid, effective from September 1. The contribution ratio for social insurance in China is relatively high, accounting for 40% of the total salary paid by enterprises. On platforms such as WeChat, netizens discussed the experience of Taiwan's pension reform, noting that Taiwan completed the military, public, and education sector pension reform under the government's persistence and mainstream public opinion support, which is worth learning from by China. The article mentions that after Tsai Ing-wen became president in 2016, she initiated a pension system reform. Despite protests from the military, public, and education sectors, she ultimately persisted with the reform to ensure the retirement life of the next generation. Analysis points out that the root of China's social security issues lies in the excessively high contribution ratio and the inappropriate timing of the policy, rather than the enforcement itself. Currently, with China's economic downturn, many citizens and enterprises are facing difficulties, and the emphasis on social insurance contributions by the authorities at this time has raised questions.