Some Chinese firms pretend to comply with mandated social insurance payments as business struggles

Group 1 - China's top court ruling invalidates workarounds for evading social insurance contributions, aiming to fund pension plans but potentially threatening jobs and businesses [1] - Small business owners are responding by offering new contracts that avoid required social insurance contributions, indicating economic trade-offs in boosting consumer demand [2] - A survey revealed that only 3 out of 18 employees reported their employers paying social insurance contributions, suggesting the ruling may not generate necessary funding for welfare [3] Group 2 - A 2019 report warned that the national pension fund could deplete by 2035 due to declining worker-to-retiree ratios, with a 2024 update suggesting delaying retirement could extend this by 8-9 years [4] - China is addressing industrial overcapacity amid deflationary pressures and trade frictions, balancing immediate employment needs with long-term reforms [5] - A survey indicated that only 34.1% of firms were fully compliant with social insurance rules, with 29.3% reporting disputes with employees over social insurance in the past year [6] Group 3 - Social insurance contributions in China typically amount to about 10% of gross income for employees and approximately 25% for employers, covering various benefits [8]