The law, adopted by the Standing Committee of the National People’s Congress (NPC) and set to take effect on July 1, defines the main assistance mechanisms – such as subsistence allowances, support for people living in extreme poverty, and temporary assistance – and introduces procedural improvements, including measures to expedite processing in emergency cases and facilitate access to benefits.
The text consists of 78 articles divided into seven chapters and establishes a comprehensive framework to ensure basic coverage for people in difficult circumstances.
Among the new provisions, the law expands the scope of beneficiaries beyond traditionally covered groups by including households with incomes slightly above the minimum threshold or those burdened by fixed expenses in areas such as health, education, or housing.
At the same time, the legal framework incorporates mechanisms to prevent dependence on public assistance, promoting the labor market integration of beneficiaries capable of working and stipulating that access to certain benefits will be conditional on accepting suitable job opportunities.
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This approach is in line with the Chinese authorities’ stance of strengthening social protection without fostering what they call “welfare dependency,” prioritizing beneficiaries’ integration into the workforce and self-sufficiency.
The strengthening of the social safety net aligns with Beijing’s official strategy to “steadily increase the contribution of consumption to economic growth,” as stated in March by Han Wenxiu, a senior official at the Central Commission for Financial and Economic Affairs, at the China Development Forum.
Along the same lines, Chinese President Xi Jinping urged this month to revive “demand-driven” growth and strengthen the role of the service sector to sustain economic activity, against a backdrop of weak consumption and high household savings rates.
The International Monetary Fund (IMF) advocated strengthening social security to boost household confidence, while the Asian Development Bank warned that high savings rates hinder efforts to stimulate demand.
