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China’s social security fund is being propped up by local government subsidies, but for how long?

When the coronavirus began taking its toll on China’s economy earlier this year, one of Beijing’s key policies to reduce the impact was to exempt firms from contributing to the national social security fund for a few months.But this policy decision has increased the financial burden on already cash-strapped local governments, which have been subsidising the fund for years.Without these local government subsidies, China’s national social security fund would have been operating at a deficit every…

Read the original article at South China Morning Post

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