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National Social Security Foundation to Be Set Up

China has decided to establish a national social security foundation, in a bid to ensure necessary subsidies to those who have been laid-off and those requiring financial aid.

At the crucial stage of China’s state-owned enterprises (SOEs) reform, the move aims to help perfect China’s social security system and create a stable social environment for the country’s reform and opening-up drive.

Approved by the Central Committee of the Communist Party of China (CPC), the State Council has decided to set up the national social security foundation and a foundation council, with Liu Zhongli, vice-minister in charge of the State Development and Planning Commission, as the chairman of the board.

Since China’s opening-up in 1978, the country has forged a social security network focusing on the unemployed, the elderly and those lacking basic living necessities.

Currently, China’s social security funds primarily come from old-age and medical insurance payments by township enterprise workers and government functionaries, as well as payments contributed by government organizations and enterprises.

The board of the foundation, affiliated to the State Council, will be directly in charge of funds allocated from the central government, of selecting and entrusting special assets management companies and announcing the profits and capital flow volumes of the foundation to the public.

The trustees of the foundation consist of social celebrities, government functionaries, experts, scholars and enterprise representatives which had been selected and appointed by the State Council.

(People’s Daily,09/26/2000)



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