China has pursued an open-door policy since 1978 and is on the door-step of becoming a member of the World Trade Organization. Notwithstanding the gradual adoption of a market economy, China still retains two essential features of socialism - an economy dominated by state-owned enterprises, and an all embracing social security system which protects the majority of the urban workers. In reviewing the history of development of the Chinese social security system, the book attempts to answer three important questions: (1) Can socialist social welfare co-exist with the market economy? (2) Can China create a market economy without sacrificing its socialist ideals? (3) Has China succeeded in creating a socialist social security system with Chinese characteristics? Exploring these issues through an analysis of the relevant documents and statistics, the author concludes that compromises are necessary to accommodate both socialist and market objectives. While the Chinese social security system is now neither socialist nor capitalist, it continues to perform its most important function of meeting the income security needs of the urban workers who are struggling hard to adapt to a market economy.
