Labor and social security right is the basic right of citizens and concerns their directinterests. China is the largest developing country in the world with numerous population and lower economy development level; therefore, it is an extremely arduous task to develop the cause of labor and social security. Chinese government took its own national conditions into consideration, based on the Constitution of the People's Republic of China and the Labor law of the People's Republic of China, to guarantee the citizens' labor and social security rights and to make efforts to improve the management and service level of it, as a result, great achievements have been made. At the early stage of the founding of People's Republic of China, the Chinese government took a series of effective measures to settle the serious issues of unemployment left over by the old China, thus guaranteed the people's basic living. With the planned economy mechanism, China implemented highly centralized systems of employment, salary and labor insurance, which exerted positive effectiveness on overall arrangement the employment of the time, ensured the workers' basic living and promoted the economic construction and social stability. However, with the development of history, the old mechanism of labor and social security had already been not able to meet the requirements of economic and social development. Since 1978, China has been focused on the central task of economic construction, has implemented reform and opening to the outside world; as a result, China gradually stepped toward the establishment of socialism market economy and developed quickly the cause of labor and social security. Chinese government adjusted rationally the employment structure, promoted with efforts of the aggregate employment, established market-oriented employment mechanisms and kept fundamentally the stability of employment trend; it devoted into the maintenance of harmonious and stable labor relation, innovation the assignment system of salary income and perfection gradually the labor criterion system, thus shaped the new type of labor relation; it also reformed and perfected the social security system to enable social insurance system to cover the majority urban employed and retired staff, in addition, it established universally minimum living security system for the residents in the urban cities, and in rural areas stimulated positively the social security system. After years' exploration and efforts, labor and social security system that adapts to socialism market economy has been initially setup. Chinese government attended actively the international labor affairs according to the principles of mutual respect, equality and mutual benefit. In the fields of labor and social security, China has conducted fruitful communications and co-operations with various international institutes like ILO (International Labor Organization), UNDP (United Union Development Program), WB (World Bank), ADB (Asian Development Bank) etc and many other countries and has played a active role in stimulation employment, elimination poverty and maintenance the labors' legal rights. Entering into the 21st century, China begins a new development stage of construction a complete better-off society and acceleration the modernization construction. Stimulating employment actively, maintaining employees' rights and interests, harmonizing labor relation, soaring up residents' income and perfection social security are the main struggling objectives of the cause of Chinese labor and social security in the early period of the new century. 1.Keeping the overall employment trend stable China is confronted with huge employment pressure due to numerous population, abundant resources of labor force and economical structural adjustment. The Chinese government has always considered promotion national economy and social development a strategic task, listed employment rate control into the main goals of national economy macro-control, adjusted rational the employment structure, erected market-oriented employment mechanism, stimulated greatly the overall employment and maintained fundamentally the stable employment trend as a whole. By the end of 2001,the population of the whole country was 1276.27 million (exclude Hong Kong Special Autonomous Region, Macao Special Autonomous Region and Taiwan Province), of which the employed covers 730.25 million and 77.03% of the labor force participation rate; the urban employed covers 32.8% of the total one, the rural 67.2% and the urban registration unemployment rate 3.6%. Implementationpolicies to energetically stimulate employment Chinese government insisted upon focusing on the central task of economic construction, brought along employment increase through economic rise, carried on active employment policies and took various effective measures to promote employment greatly. Adjusting the industrial structure reasonably. It needs to channel off the development of those industries and enterprises that benefit for increasing employment opportunities in order to adapt to the industrial adjustment. Through adjustment the industrial policies to concentrate on the development of those labor-force-intensive enterprises with comparative advantages and market potentials, especially on those service and smalland-mediumsized enterprises with comparatively large room for employment, meanwhile to enhance investment of the basic construction, to expand domestic demand and to maintain the rapid growth of the national economy. To develop actively various systems of ownership like collective economy, privately-run economy and private economy etc, to implement flexible forms of employment, to increase employment posts and to open up employment channels. Establish market-oriented employment mechanism. Chinese government carried on the employment guidelines of "labors self-determine employment, market adjust employment and government stimulate employment", encouraged the labors to obtain the employment posts through fair competition, supported the employment units to make their decisions on the qualities and numbers of the employees, and took various measures to promote the formation of market-oriented employment mechanism. The information network of labor force market has already began to exert its influence, thus promoted the information communication of supply and demand on labor forces and helped the labors to be employed and reemployed through labor force market. In order to establish the labor force market with sound mechanism, standardized operation, thoughtful service and forceful supervision, chinese government has conducted scientific, standardized and modernized construction pilots on labor force market in 100 cities. In recent years, chinese government began to explore the establishment of price formation mechanism in the labor force market, thus to exert the basic regulatory rule of market mechanism in the aspects of labor force resources' distribution, salary formation and labor mobility. Upgrading the labors' qualities. In order to improve labors' cultural qualities and vocational skills, the Chinese government has developed various educational causes through multi-kinds of channels and paid equal attention to the degree certificates and vocational qualifications. At present, the population that received nine-year compulsory education covered 85% with illiteracy rate among young and middle-aged people descended to 5%; there were 1,225 institutes of higher education with 7.19 million students; 686 adult institutes of higher learning with 4.56 million students and 80.4 thousand junior schools with 7.919 thousand students. The government also tried to shape an all-directional and multi-layered vocational technical education and training system through development vocational training forms like senior and secondary vocational technical schools, technical workers' schools, employment training centers, private vocational training institutes and enterprises' staff training centers etc, to enhance the training on the new-born labor forces, on-job staff and the laid-off unemployment persons. Implement completedly one to three years' vocational training system on the newborn labor forces caused by the junior and senior graduates that are not allowed to enter the higher schools; adjust and rearrange the technical schools and employment training centers to establish comprehensive training base; impel the mechanism formation of "market leading training and training promotion employment"; popularize completely the vocational qualifications, as a result, the vocational qualification mechanism covering secondary worker and advanced worker is founded. Nowadays over 80% of the new employees in chinese urban cities possessed senior schools qualifications or experienced vocational technical training and nearly 35 million people obtained related qualified certificates. Developing employment service mechanisms. Since the 1980s, China has been establishing and perfecting employment service mechanisms including career introduction, employment training, unemployment insurance and employment service enterprises on labor etc. Through employment service mechanism, the government provided instructive, consultative and introduction services for labors to hunt jobs and enterprises employees, trained the first time job-hunters before being employed and the unemployment staff on transferring jobs, also offered unemployment insurance and employment posts for the disadvantageous groups. The government encouraged the private career introduction institutes to develop, propelled employment services extending to the communities, and thus formed the multi-layered employment service net. Making overall plannings on urban and rural employment. There exist abundant labor force resources and serious underemployment issues in China's rural areas. The Chinese government highly stressed the employment issue of rural labor forces, combined the strategies of "urbanize" and "western development" etc, spared no efforts to explore the new ways of urban and rural overall employment, as a result, formed two-side policies. One side is to promote labor forces to be locally employed. Make full use of the advantages of local rural resources, adjust actively agricultural and rural economic structure, develop profitable and labor-intensive agriculture, develop rural non-agricultural industry, guide the development of township enterprises to combine with the construction of small urban cities and towns, enlarge the scales of infrastructure constructions including rural irrigation works, traffic and transportation and rural electrified wire netting etc, and develop rural elementary education and vocational career training. The other side is to instruct rural labor forces on transregional floating employment. The successful rural transformation greatly improved its productivity and enabled the redundant labor forces to move from rural areas to urban cities and from western inlands to eastern-coastal regionss. The Chinese government vigorously instructs rural labor forces on transregional rational floating, carries on pre-output training of labor forces, arranges them to float in order, boosts the employment rate of outgoing labor forces and erects two-way floating employment mechanism of labor forces outgoing employment and homebound creation through enhancement the information net construction and the intermediary service. At present, there were 1,000 supervision posts of labor forces floating employment in 100 counties and cities of the country, analyzing the status of floating and demand of rural labor forces,and releasing information timely and to facilitate their rational floating. Enlarging employment scales and optimize employment structure Chinese gross employment has increased obviously due to the common efforts made by the government and various walks of life. Since 1978, the urban and rural employed staff has increased 328.73 million, of which urban area covers144.26 million. The employment structure altered tremendously. In 2000, the employment structural proportions of the primary, secondary and tertiary industry were 50%, 22.5% and 27.5% respectively. Compared with the past, the employment proportion in the primary industry decreased considerably, however, the secondary and tertiary industries increased relatively, especially the increasing speed of the tertiary industry's employment proportion surpassed that of the secondary industry. The proportion of employed persons in the state-owned and collective units to those in cities and towns descended to 37.3% in 2001 from 99.8% in 1978 and those in private enterprises, individual and foreigninvested enterprises increased evidently. In rural areas, with the implementation of urbanization strategy and the development of non-agricultural industry, the non-agricultural employment and rural labor forces diversion developed quickly though agricultural employment still gave priority to the household. By the end of 2000, the employed persons in township enterprises arrived at 1281.95 million, of which 383.28 million in township-collective enterprise, 325.25 million in township-private enterprises and 573.42 million in township-individual enterprises. There had been 80 million labor forces emigrated from rural areas to cities and towns since 1990s. Stimulating the laid-off workers and unemployed persons to be re-employed With the acceleration of economic structural adjustment, the long-accumulated contradictions for example the enterprises' operational mechanism etc has been increasingly unveiled and a great deal of redundant people has been laid-off. It is comparatively difficult to realize re-employment for the state-owned enterprises workers since they are relatively older in age and lower in cultural qualities and unitary in vocational skills. In order to settle the issues of laid-off workers and unemployment persons, the Chinese government stipulated a series of re-employment policies and adopted measures of various aspects, at the same time to guarantee their basic living. Adopt positive and active measures of employment service. Establishing universally re-employment service center in the state-owned enterprises with laid-off staff, the governmental public employment service institutes provided onecareer guidance, three career information and one opportunity of career training for free per half year after the laid-off staff entered into the center. Started from 1998, the government implemented the first phase of the re-employment training plan of " 10 million in three years" (training 10 million laid-off workers and unemployment persons within three years), carried out effective measures for example purchasing training fruits etc by mobilizing the powerful social training to boost the laid-off staff and unemployment persons to participate the re-employment training. In the three years of 1998 to 2000, various places in the country altogether organized more than 13 million laid-off workers and unemployment persons to take part in the training, and the employment rate arrived at 60% after receiving half a year training. From 2001, the government began to carry out the second session re-employment training of "10 million in three years". At present the "career-creation training" plans has been carried on in 30 cities to foster the laid-off staff and unemployment persons who are willing to launch small-sized enterprises on career-creation, to facilitate them on industrial and commercial registration and small amount of loans' acquisition after the training ended, and to absorb all the more laid-off staff and unemployed persons to realize re-employment through development small sized enterprises. Perfecting and carrying out re-employment preferential policies. Helping laid-off staff and unemployment persons to launch productive self-salvation economic entities or labor organizations in order to be self-employed or unite to be employed through the measures of simplification the industrial and commercial registration, arrangement grounds, reduction or exemption taxes and fees and offering credits etc. Make the laid-off staff and unemployment persons concentrate on community employment and develop energetically the small sized and labor employment service enterprises with relative powerful capacity of absorbing employment. Carring out "re-employment helping activity". The government organized and carry out "re-employment helping activity" in order to settle the actual difficulties confronted by the laid-off staff after their leaving the centers, which enabled them through diverse helping measures to obtain timely and effective services on the connective aspects of basic living security, re-employment and social insurance etc after they lefted the center. In 1998-2001, the accumulated laid-off staff of the state-owned enterprises amounted for 25.5 million, 16.8 million of which were re-employed. Securing women's employment rights Special attention has been paid to women's employment in China. The Constitution of the People's Republic of China, LaborLaw of the People's Republic of China and Women's Rights Security Law of the People's Republic of Chinaall have specifically prescribed to secure women employment rights. The government guarantees women to enjoy equal labor rights with men, practices equal pay for work of equal value for men and women, ensures women to receive special care during menses, pregnancy and lactation. The Chinese government and various walks of the society trained women on vocational skills, developed and opened up the fields and industries catering to women employment, carried out more flexible employment forms to offer employment opportunities for women with diversified employment requirements. Assisting the special groups like the diabled to be employed Special attention has been highly paid to the disabled's rights on participation into social labor and employment. China adopted the guidelines of combination concentration and decentralization and encouragement self-employed to boost the disabled's employment. Warfare enterprises were the important form for dealing with the disabled's employment and the government encouraged developing them to absorb more disabled persons through preferential policies like reduction and exemption taxes and fees. Meanwhile, the government carried out the policy that the disabled is to be employed in proportion, all the employment units were to arrange work for them in proportion and those that cannot meet it should pay the disabled employment money. From 1996 to 2000, various walks of society trained over 1.1 million disabled persons with governmental appropriate funds and the disabled employment security money, arranged works for more than 1.1 million and improved their employment rate from 70% to 80.7%. As for the urban jobless and the older laid-off workers and unemployment persons who have difficulty to be employed, the government erected employment service system, supported financially the public benefit employment organizations like branching out projects of environmental sanitation, community safety and community service etc to arrange works for the extremely poverty-stricken persons through and the free employment services, as a result, it achieved fairly favorable effects. 2.The new type of labor relation has been basically formed The complicated and diversified China's labor relation is on the rise during establishing and perfecting the mechanism of socialism market economy. China devoted to maintaining the harmonious and stable labor relation, thus has initially formed the laws and rules of labor relation coordination with Labor Law of the People's Republic of China its main body, also has established labor contract system and collectivity contract system, 3-party co-ordination mechanism, labor criterion system, labor disputation management system and labor security and supervision system, and the new type of labor relation in compliance with socialism market economy has been fundamentally shaped. Implementation of labor contract system Chinese labor contract system was experimented from the mid-term of the 1980s, vigorously popularized in the 90s and was being broadly practiced in various urban enterprises. China's law stipulates that the employment units should establish labor relation with labors in accordance with the law, should arrive at labor contract in written form with or without fixed time limit or with the time limits of fulfilling given task; while concluding the labor contract, both sides with labor relation should abide by the principles of equality and volunteer, consultation and agreement. The labor contract system defines the rights and duties of both the labors and the employment units and guarantees the labor's decision-making power on job choosing and that of the employment units on personnel choosing. Implementation of collective contract system The Chinese government encourages enterprises to enhance consistently the functions of staff's representative assembly and labor union and to perfect the staff democratic participation system. In order to form the self-co-ordination mechanism of the enterprise's labor relation, China began to explore the establishment of collective contract system through equal consultation and popularized it. China's laws and rules prescribe that the staff can carry out equal consultation with the enterprise by labor union's representatives or directly recommending the representatives to sign the collective contract. The equal consultation diversified in form and the collective contract varied in content. The majority enterprises adopted the form of signing collective contract through consultation between the employer's labor union and the enterprise. In recent years, collective contract system has been put forward not only in the non-state-owned enterprises but also gradually in the innovation process of state-owned ones. Up to the end of 2001, the collective contracts that were signed by the national enterprises and reported to the labor and social security administrative department for records already arrived at 270 thousand. Establishing of three-party co-ordination mechanism China actively established the three-party (government, labor union and enterprise) co-ordination mechanism catering to Chinese national conditions, which constituted of the representatives dispatched by various governmental labor and social security departments, labor union organizations and enterprise organizations, communicated and consulted on importance issues involved with labor relation and put forward suggestions on drafting related rules of labor and social security and on the considerably significant reformation schemes and policy measures that concerned the three-party benefits' adjustment. In August 2001, the Ministry ofLabor and Social Security established the three-party conference system of national co-ordination labor relation together with All-China Federation of Trade Unions and China Enterprise Confederation & China Federation of Enterprises, and called on the first state-level three-party conference on co-ordination of labor relation, which enabled China to possess a comparative standardized and stable working mechanism on labor relation regulation. At present, over 10 provinces, municipalities and cities including Beijing, Tianjin, Hebei, Shanxi, Jiangsu and Shenzhen and Dalian etc have established regional labor relation three-party co-ordination mechanism, of which, the provinces like Shanxi and Jiangsu etc even established it with three administrative levels at the provinces, prefectures (cities) and counties (districts) level. Perfecting labor criterion system The Chinese government paid attention to rationally ascertain, legally issue and timely adjust labor criteria, to ensure the labors' legal rights and to boost the development of economy and society. Nowadays, China has initially formed the labor criterion system with Labor Law of the People's Republic of China its core and its contents involved with man-hour, rest and vocation, salary, no allowance for child labor, special care for female and under aged staff, labor ration and professional safety and sanitation etc, and adjusted and perfected it continuously according to the development of economy and society. To ensure the labors to enjoy the rights of normal work, rest and vocation, at present, China carries on the man-hour system, i,e, the office hours of the labors are less than 8 per day and the average office hours are less than 40 per week. The employment units must consult with the labor union and the labors if they prolong working time, and generally it is less than 1 hour per day and in special cases 3 hours, and less than 36 hours per month. In the aspects of rest and vocation, the labors are entitled to enjoy the legal holidays and at least one day for rest per week according to the law. The government prohibits the minors under 16 to be employed and strictly investigates and prosecutes the illegal behavior of employing child labor. As for the female and under aged (16 or above but under 18) employees, the government prohibits the employment units to make them engage in the work that are definitely tabooed by the country. China has stipulated national, industrial and regional criterions in the aspects of occupational safety and hygiene. In order to perfect occupational safety and sanitation management system, the Chinese government in 1999 issued its standards and carried out authentication. At the present time, China has already laid down more than 200 national and industrial standards for labor quota and quantity, and has issued other labor criterions like occupational criteria for classification and skills etc. To ensure the scientific and rational labor criterions to be carried out smoothly, the Chinese government is to solicit opinions broadly from the labor unions, enterprise organizations, experts and scholars during establishment, issuance and adjustment the labor criterions. The Chinese government has persistently advocated that labor criterions should be in harmony with homeland's economic and social development level, guarantee the basic human rights, boost the development of national economy and the advancement of society and with which to improve gradually the living conditions. China attaches importance to the experiences of international world on establishment and implementation the labor criterions and accesses timely into related international labor treaties by combination the homeland's economic and social development. Perfecting labor disputation management system The Chinese government alleges to deal with labor disputes timely according to the law, safeguards both parties' legal rights, advocates and supports them to settle the disputation through their own consultation. China's related laws definitely prescribe the formalities and institutes that are to manage labor disputations in accordance with the law. In line with the prescriptions, when labor disputation between the labor and the enterprise occurs, one party is entitled to apply coordination to the labor disputation co-ordination commission within the enterprise, also can apply to the local disputation arbitration committee if coordination failed or he is reluctant to be coordinated; the party is still authorized to take legal proceedings to court when he is not satisfied with the adjudications given by the arbitration institutes. By the end of 2001, the whole country has established 3,192 above county level (include county level) labor disputation arbitration committees and nearly 20 thousand full-time and part-time ones. From the issuance of Regulations on Labor Disputation Management of the People's Republic of China on August 1,1993 to the end of 2001, various levels of labor disputation arbitration committees accepted altogether 6.88 million labor disputation cases with 23.68 million people involved in, and the rate of ending cases had been all the way over 90%. In addition, various levels of labor disputation arbitration committees accepted 5.03 million cases without putting it on files for investigation and prosecution. Setting up labor security and supervision system Since 1993, China has gradually built up labor security and supervision system. The laws and rules like Labor Law of the People's Republic and China and the Law on Administrative Sanctions of the People's Republic of China etc stipulates the duties and working formalities of labor security and supervision institutes. The labor and social security administrative department supervises and checks the employers on their abiding by the laws and rules of the labor and social security, and they are entitled to refrain the behaviors of violation its laws and rules, charge it to be rectified and even bestow administrative sanctions like warnings and fines etc. Any organization and individual are entitled to accuse and impeach the behavior of violation the laws and rules of labor and social security; when one party considers that the labor and social security administrative department impinges his/her legal rights during execution and supervision the law, he/her can take the proceedings of administrative reconsideration or administrative lawsuit. China's various levels of labor and social security departments consistently enhance its law execution dynamic in the principles of administration by law and strictly execution the law, establish and perfect labor security and supervision organization. The end of 2001 saw the establishment of 3274 labor security and supervision institutes in the whole country with 40 thousand memberships. Innovation the assignment system ofsalary income Chinese government adheres to the system of mainly distribution according to one's performance and coexistence multi-kinds of distribution ways, which embodies the principle of giving priority to efficiency with due consideration to fairness. Exerting the adjustment role of market mechanism to salaryincome through innovation salary system, enable the labors to improve their salaryincomes accordingly with the development of economy and the enhancement of enterprise's efficiency. The laws and rules including Labor Law of the People's Republic of China, Provisions of Enterprise's Minimum salarySalary and Provisiona;Regulation on salarySalary Payment definitely stipulate to standardize salarysalary distribution. The Chinese government sets up in accordance with law and adjusts timely the minimum salarysalary criteria, standardizes the ways of salarysalary payment, issues regularly salarysalary guidance lines, guidance quantity of salarysalary in labor force market and information of labor cost, encourages the enterprise to try out the collective consultation system on salarysalaries, steers the enterprise to adopt flexible and diversified salarysalary system and assignment form, also safeguards the enterprise's power of self-decision making on salarysalary assignment and the labors' rights of obtaining pays of labor in compliance with the law. Nowadays, minimum salarysalary system has been established throughout the country with over 10 thousand enterprises experimented the collective consultation on salary, 26 provinces,autonomous regions and municipalities issued the salarysalary guidance line and 88 cities the guidance quantity of salarysalaries in labor force market. Since the reform and opening up, salaryincome of the workers in cities and towns has been consistently on the rise with the quick development of economy. By the end of 2001, the average currency income salaryof workers in cities and towns arrived at RMB10.87 thousand yuan, 16.3 times of that in 1978, and the average actual salarysalary of the workers increased at an annual average rate of 5.5%. 3.Initially establishment of social security system In order to boost the economic development and stable society, to gradually improve the living conditions and social security treatment of the broad masses, the Chinese government devotes to the construction of sound social security system catering to socialism market economic mechanism. After years' exploration and practice, the social security system with social insurance, social relief, social welfare, allowance and social mutually aid as its main contents has been initially established that raised security capitals through multi-channels and standardized step by step it management service. Innovation of social security system Since 1980s, the Chinese government has made a series of innovations to social security system. The goal is: to establish social security system that is independent from enterprises and institutions and pluralism in capital resources, standardizes security system and socialize management service. Its main characters are: fundamentally security, broadly coverage, multiadministration levels and gradually unification. In conformity with the level of economic development, the fundamental securities established compulsorily by the country mainly meet people's basic needs; social securities cover all the citizens; besides the fundamental securities, the country energetically promotes the development of other security forms, strives for the multi-layered social security system; and gradually implements the national unified social security system through innovation and development. After several decades' efforts, nowadays, the basic policies of social security system have been erected and issued and carried out in succession, which covers the majority retirees and urban workers and even the floating farmer-workers in some places; system for ensuring a minimum standard of living has been established universally in the urban cities. In 2001, the Chinese government began the comprehensive experiments for perfecting urban social security system in Liaoning Province. Since the mid-term of 1990s, the Chinese government has carried out a series of reformation on social security management system in order to enhance the unified layout of various social security systems and its management and supervision. Transfer the social insurance that was managed by many administrative departments respectively in the past into unified management by the social security administrative departments, its various levels also accordingly built up social insurance management institutes to undertake the specific management affairs of social insurance. Social insurance affairs that were undertook by the enterprises in the past gradually altered to be managed by the social institutes, i,e, to deliver social insurance treatments in a socialized way and to carry out community management of the objects of social insurance. The Chinese government has intensified administrative management and social supervision on social insurance funds. Social insurance funds were placed in line with special financial accounts and managed by both income and expenses, thus earmarked the funds for their special purpose only. Various labor and social security administrative departments specially erected the supervision institutes on social insurance funds, which was responsible for inspection and supervision on the levying, management and payment of social security funds, and investigation and prosecution the cases that violated laws and rules. Besides, Chinese government still tried to open up the resources of social security funds through a series of measures including intensification funds levying and improvement the rate of social security expenditure to financial expenditure etc. Central treasury in 2001 alone spent RMB 98.2 billion yuan on social security expenditure, which was 5.18 times of that in 1998. Chinese government specially founded the social security funds council in the country, which was responsible for operation and management the social security funds acquired by state stock reduction, central treasury input and various ways of raising. Since 1998, the Chinese government has adopted the measures of "two guarantees". One is to guarantee the basic living of laid-off workers in the state-owned enterprises and to generally establish for them the re-employment service centers, which released the basic living expenses to laid-off workers, and paid the social insurance premium for them, the necessary capitals were raised by the three sides, i,e, governmental treasury, enterprises and society. At the same time, organize them to go in for the vocational guidance and re-employment training, steer and facilitate them to realize re-employment. The other is to guarantee the basic living of the retired and to grant the basic pensions on schedule with sufficient amount. To safeguard the implementation of "two guarantees", Chinese government proposed the strategy of " three security lines": the laid-off workers in state-owned enterprises can receive at most three years' basic living expenses in the re-employment service center; they are allowed continually to receive at most two years' unemployment insurance if failed to be employed within the three years; and they are also entitled to receive at most two years' minimum living security expenses if still employed when the unemployment insurance expires. By 2001, the absolutely majority of the laid-off workers in the state-owned enterprise were granted the basic living expenses, the pensions for the retired were released on schedule with sufficient amount. The implementation of "two guarantees" has exerted considerably significance for maintaining the legal rights of laid-off workers, retired persons and social stability. Endowment insurance system In 1984, various places in China carried on the reformation of endowment insurance system. In 1997, the Chinese government enacted Decision on Establishment the Unified Basic Endowment Insurance System for the Enterprises' Workers and started to establish the national unified basic endowment system of urban enterprises' workers. Chinese basic endowment insurance system took the form of combination social overall planning and individual accounts. The basic endowment insurance covers the workers in the diversified urban enterprises; and all the urban enterprises and their workers should fulfill the duties of payment the basic endowment premium. At present, the payment rate of the enterprises is about 20% of the total amount of salary and the individual's is 8% of his/her salary. The basic endowment insurance premium paid by the enterprises is partially used for setting up the overall planning funds and partially transferred into the individual accounts; and that paid by the individuals is entered into the individual accounts. The basic endowment insurance premium constitutes of foundation premium and that in the individual accounts, the former is paid by the social overall planning funds, the monthly foundation pension accounts for 20% of the workers' social average salary and the monthly individual account's pension covers /120. The individual account pension can be inherited. As for those who worked before implementation the new system and retired after it was carried out, the transitional pension is to be granted too. After years' promotion, the workers who involved into the basic endowment insurance increased from 86.71 million in 1997 to 108.02 million in 2001; those that received the basic pension soared up from 25.33 million to 33.81 million and the average monthly old-age pension also enhanced form RMB 430 yuan to RMB 556 yuan. To ensure the basic old-age pension to be granted on schedule with sufficient amount, Chinese government in recent years has made no efforts to improve the levels of overall planning the basic endowment insurance, gradually carried out the provincial level of overall planning and continually amplify the financial input for the basic endowment insurance. From 1998 to 2001, the allowance expenditure conducted by the central treasury alone arrived at 86.1 RMB billion yuan. Nowadays, the social welfare institutes (like banks and post offices) generally release the basic endowment pension and in 2001 the release rate arrived at 98%. In addition the original old-age security system are still conducted for the workers in the administrative departments and institutes and the retired staff. In 1991, certain rural places in China started the experiments of endowment insurance system. In the principles of "individual payment is the main part, collective subsidy the supplementary part and the government bestows policy support", rural endowment insurance system took the mode of individual accounts with funds accumulated. Medical insurance system In 1998, the Chinese government started the innovation on the free medical service system of the administrative departments and institutes and the labor insurance medical system of the state-owned enterprises. In 1998, the Chinese government issued "determination on establishment the basic medical insurance system of the urban workers", and commenced to establish it in the whole country. China's basic medical insurance system practiced the mode of combination social overall planning and individual accounts. The basic medical funds are principally overall planned by the prefecture and city levels. The basic medical insurance covers all of the urban employment units and their workers; all the enterprises, national administrative departments, institutes and other units and their workers should undertake the responsibility of paying the basic medical premium. At present, the payment rate of the employment units is about 6% of the total amount of salary and that of the individual is 2% of his/her salary. The basic medical premium paid by the units is partially used for establishment the overall planning funds and partially transferred into individual accounts; and that paid by the individual is deposited in the individual accounts. The overall planning funds and the individual accounts respectively undertake different responsibilities of payment the medical fees. The former is mainly used for payment the fees due to hospitalization and clinical curing the chronic disease, also it possesses the initially payment standard and maximum payment limitation; the latter is mainly used for payment the common outpatient fees. To ensure the workers that involved in it to enjoy basic medical services and to control effectively the accelerated increase of medical fees, the Chinese government enhanced the management of medical services, framed the catalogue for basic medical insurance medicines, the projects for diagnosis and treatment and the standards for medical service facilities, carried out qualification approval on the medical institutes and drugstores that offered medical insurance service and allowed the workers that involved in the medical insurance to select. To coordinate with the reformation of basic medical insurance, the country contemporarily promoted the reformation of production and circulation system of medical institutes and medicines. Through establishment the competitive mechanism among the medial institutes and the market operational mechanism of medicine production and circulation, try to realize the goal of "offering comparatively qualified medical services with comparatively lower fees". In addition to the basic medical insurance, various districts even universally erected the mutual aid system on large amount of medical fees, to settle those medical fees that are above the maximum payment limitation of social overall planning funds. The country also set up the medical pension system for the civil servants. The qualified enterprises are entitled to erect the enterprises' supplementary medical insurance for the workers. The country will also gradually establish social medical aid system to offer the basic medical security for the poverty-stricken population. China's basic medical insurance system is being little by little boosted and its coverage areas are constantly enlarging. By the end of 2001, 97% of the prefectures and cities in the country have initiated the basic medical insurance reformation with 76.29 million people participated in. What's more, free medical service and other forms of medical security system still covered more than 100 million urban residents, which is being placed in line with basic medical insurance system by chinese government. Unemployment insurance system In the early stages of the founding of the People's Republic of China, the transient unemployment insurance system was implemented. Hereafter, due to the system of state monopoly on exclusive selling and distribution under the planned economy mechanism, it was gradually abolished. After the reform and opening up policy, the Chinese government established step by step the unemployment insurance system since 1986 in order to adapt to the operational mechanism transformation of the state-owned enterprises and the considerable innovation of labor system, thus provided basic living security for the employment workers. The issuance of Ordinances on Unemployment Insurance in 1999 by the Chinese government pushed the construction of unemployment insurance system into a new development stage. The Insurance covered all of the enterprises and institutes and their staff in the cities and towns and who must pay unemployment insurance fees. The units' should pay 2% of the total salarys and the individuals pay 1% of his/her own salarys. It needs to meet tree conditions for enjoying unemployment insurance: pay one year's unemployment insurance fees; stop his/her work reluctantly; have already conducted unemployment registration and desire to be employed. Unemployment insurance treatment mainly refers to the premium, which is granted monthly, less than the minimum salary standard but more than the minimum living standard of urban residents. The time limit for receiving unemployment insurance premium is determined by the years that fees are paid, with 24 months the most. During receiving the premium, if the unemployment person suffers from disease, the medical pensions are also available for him; if he/she dies during the period, the members of the deceased are also entitled to receive burial pensions and subsidies. What's more, during this period, he/she can enjoy vocational training and career introduction subsidies. In recent years, the areas covered by unemployment insurance are amplifying and security objects are on the rise. From 1998 to 2001, the population guaranteed by the unemployment insurance increased from 79.28 million to 103.55 million. 3.12 million people in 2001 did not receive the Premium. With the perfection of the system, the basic living security system of the laid-off workers in the state-owned enterprises is gradually placed in line with unemployment insurance. The insurance system of industrial injury The end of 1980s saw Chinese governmental reformation on the insurance system of industrial injury. In 1996, related departments of Chinese government made the "trying out the insurance system of industrial injury for the enterprises' workers a public appearance, and began to establish the system. In the same year, the Chinese government also built up the "criteria for evaluation the degrees of the workers' industrial injury and disease" , which laid basis for the evaluation the degrees. Trial Method Insurance System of Industrial Injury for Enterprises Employees stipulates: the insurance premium of industrial injury is to be paid by the enterprise rather the workers. The payment of the system implements the industrial distinction rate and the floating rate of the enterprise. To confirm the rate of different walks of life in accordance with the risky degree of industrial accidents and vocational imperils; and based on the rate to determine the specific rate in the current year according to the practical risks of industrial accidents and the expenditure of the its premium. The payment treatments of the insurance premium of industrial wounds mainly include: the medical fees during curing the industrial wounds; the grant-in-aid, pensions and nursing fees ect for the wounded and disabled according their incapacitated degree after ending the medical cure. By the end of 2001, the average insurance rate of industrial wounds is about 1% with 43.45 million people took part in the insurance of industrial wounds. And those units that did not participate in it should still undertake the responsibilities of payment the treatment of industrial wounds. Childbearing insurance system Since 1988, certain places in China began to reform the enterprises' childbearing insurance system. In 1994, the Chinese government established "trial implementation on childbearing insurance of the enterprises' workers" based on summarizing the experiences of various places, which said, the enterprises rather the individuals are to pay the childbearing premium. The payment treatments of childbearing insurance mainly includes: the medical fees due to giving birth and the childbearing pensions granted monthly during maternity leave. By the end of 2001,the average childbearing insurance rate of the whole country was 0.7% concerned 34.55 million workers. The units without involvement still undertook the responsibilities of payment the childbearing treatments. System ensuring a minimum standard of living As early as the early stage of the People's Republic of China, the Chinese government has established the social relief system aimed at the poverty-stricken residents in the urban and rural area. In 1993, it began to reform the system in the urban cities and experimented the establishment of minimum living security system, which was built up in all the cities and counties when it came to 1999. In the same year, the Chinese government formally issued Regulations on Ensuring a Minimum Standard of Living for Urban Inhabitants and offered the most basic living securities for all of the urban residents. Local governments listed the basic living security capitals of urban residents into financial budget and ascertained the basic living security criteria according to the necessary fees for maintaining their basic living. Those that the household average revenue is less than the minimum living security criteria are entitled to apply for the basic living security treatments. However, it needs to carry out the investigation on household revenue and the treatments equal the margin part between the household average revenue and the minimum living security criteria. In 2001,117.07 million people in cities received the basic living security funds and RMB 2.301 billion yuan was utilized to grant the basic living security treatments by the central treasury. In recent years, some rural areas too erected the basic living security system. Social welfare system Chinese social welfare system indicates the government provides the basic living security for the special hardness groups like the old, the handicapped and the orphans ect. In order to secure their living rights, the country issued Law of the People's Republic of China on the Rights of the Old, Law of the People's Republic of China on the Protection of the Disabled and Work Principles for Fending the Rural Five Fuarantees (childless and infirm old persons who are guaranteed food, clothing, medical care, housing and burial expenses) etc. Related laws and rules prescribe: to carry on centralized fending for the urban solitary and lonely old persons and the qualified disabled persons and orphans, and to carry out centralized and distributed fending the rural ones; centralized fending is generally conducted by the welfare institutes for example social welfare institutions, homes for the aged, sanatoriums and children welfare institutions etc; to initiate various kinds of social welfare enterprises for the disabled through governmental preferential policies and to facilitate them to acquire suitable employment opportunities. Chinese social welfare cause has made great achievements. Up to the end of 2001, there were 3,327 governmental conducted social welfare institutions that adopted 1.91 million persons; 35 thousand collectively conducted ones that adopted 6.68 million persons; 934 private ones with 34 thousand persons adopted and 38 thousand social welfare enterprises that arranged work for 6.99 million persons. Besides, China also collected capitals by emission social lotteries to assist the cause of social welfare and in 2001 RMB 4.2 billion yuan was raised. The system of giving special care and aftercare to the servicemen, and to the family members of revolutionary martyrs and servicemen Care and aftercare system implies the country and society compensate and commend the special social groups for their contributions. At present, there are altogether 38 million persons to be given specially care and aftercare. In order to ensure their rights, the country subsequently issued the laws and rules including Compliment Ordinances for the Revolutionary Martyrs, Ordinances of Pensions and Special Treatments for the Servicemen and Aftercare Ordinances for the Retired Soldiers in Urban Area" etc, which stipulate: to allow fixed quantity of subsidies regularly to the key persons that are to be given special care and aftercare including the members of sacrificed servicemen, the wounded and disabled revolutionary servicemen and the old retired army men etc; to grant pensions to the members of compulsory servicemen; to decrease and exempt medical fees for the key persons that are to be given special care and aftercare like the wounded and disabled revolutionary servicemen; to arrange works for the retired soldiers in the cities in an one-off way and to issue the lump-sum economic grants for the self-employed persons. From 1996 to 2001, various levels of treasuries in the country launched accumulatedly 29.2 RMB billion yuan into the pensions. Calamity salvation system China is country with frequent natural calamities and constantly attacked by heavy floods, draughts, windstorms and hailstones etc, which seriously impacted people's living. To salve well the calamity-stricken people, China established the social salvation system aiming at the suddenly outburst natural calamities. In China, the governments of various levels arranged salvation expenditures from the financial budgets annually for alleviation the victims of calamities. From 1996 to 2001, the salvation expenditures of various levels of treasuries arrived at RMB 21.26 billion yuan, which offered foods, clothing and quilts etc for 0.39 billion people. Calamity salvation system forcefully secures the basic living of calamity-stricken people. Social mutually aid system Mutually aid within neighborhoods is the fine tradition of the Chinese nation. Donation Law of the People's Republic of China on Public Welfares issued in 1999 standardized and encouraged legislatively the donation activities to be normal and systematic. In 2001, the civil affairs departments received RMB 1.59 billion yuan of social donations (including money converted by donated materials). The Chinese government still energetically advocated the departments, enterprises and institutes and social groups to facilitate and support organically the distressed households to cast off poverty and set out on a road to prosperity. The grass roots governments made allowances and served the distressed by initiating community servings. Since 1994, various levels of labor unions carried out the "heart-warming" to the families of poverty-distressed workers. In the past few years, RMB 10.44 billion yuan was raised and 39.75 million houses of the distressed workers, model workers, the retired ones and the wounded and disabled ones were dropped in on. 4.Development in the early 21st century China began to carry out the TenthFive-year Plan period (2001-2005) of national economy and social development from 2001, thus the cause of labor and social security entered into a new phrase. In the early new century, there exist not only problems to be worked out but also new development opportunities during the development of labor and social security cause. The all-round advancement of reform and opening up and modernization construction have created favorable conditions for settling the issues of employment and social security; the further development of national economy and the enhancement of economic strength have offered firmly substantial basis for amplification employment and development social security cause; the initially established market-oriented employment mechanism and social security system have laid a favorable foundation for further boosting labor and social security cause. Meanwhile, the Chinese government is soberly conscious that in the long coming periods the employment conflict in the urban and rural areas still stands out, structural unemployment is be more austere, labor relation tends to be complicated, the tension given by an aging population and the increasing unemployment persons to social security is to further grown up, therefore, it takes to shoulder heavy responsibilities to develop the cause of social security in the rural areas. Goals and missions In the early 21st century, the goals for development the cause of Chinese labor and social security are: to establish the comparatively perfect labor and social security system that answers for the requirements of socialism market economy and adapts to the development level of Chinese productive forces, to enable the broad labors to obtain sufficient employment and basic social security, to safeguard the legal rights of labors and employment units, to improve the urban and rural residents' material and cultural level and to promote economic development and social stability. Main tasks are: constantly improve the labors' qualities and employment structure to basically form market-oriented employment mechanism, try to increase employment, standardize and perfect the statistics of employment rate and control it within 5%; positively coordinate labor relation, maintain labor relation harmonious and stable; to consummate the macro-control system on revenue assignment, to guarantee rational relationship of revenue assignment, to increase the governable revenue of urban residents and the average pure revenue of rural inhabitants by about 5%; to quicken up the construction of social security system in the urban areas, to ameliorate the manner of raising funds And the operational mechanism, to promote the socialized social security management and service; in the countryside, with the prosecutor of multi-kinds of farmers' old-age security and health security to explore energetically the basic security system that adapts to socialism market economy and economic development level and to establish the systems helpful for the disadvantageous groups' living and working. Policy measures ----Carry out positive employment-promotion policies to enlarge the employment scale in every possible way. Maintain economy to increase continually with comparatively fast speed, enlarge domestic demand, create furthest new employment opportunities and increase the overall employment. Improve the structure of labor force employment, develop greatly the labor-intensive industry and enterprise and consider the third industry, smallandmedium-sized enterprises and non-public-owned economy as the main channels for amplification employment. Put the preferential policies into further effect and stimulate the laid-off unemployment workers to be re-employed. ----Establish unified and standardized labor force market and plan the urban and rural employment as a whole and perfect employment service system. Deepen the reformation of laboring personnel and household registration management system, steer labor forces to float in order between urban and rural areas and regions and promote the redundant labor forces in countryside to be transferred. Improve the services of public vocational introduction institutes and boost the private-runned ones to develop healthily. ----Improve the labors' all-round qualities and carry out flexible forms of employment. Push vocational training system and employment access system forward, intensify vocational training, continuing education and re-employment training and implement the system of job qualification certificate. Attach importance to the vocational skills training of rural labor forces and step by step form the perfect system of rural vocational training. Adopt flexible forms of employment and advocate self-determination employment. ----Consolidate and perfect labor contract system, boost greatly collectivity contract system and promote the three-side coordinating mechanism of labor relation to be established. Actively formulate and amend the basic labor standard of the country and perfect the labor standard system that is totally in conformity with Chinese national conditions. Further consummate labor disputation management system and continually improve the comprehensive ability of prevention and management labor disputation. ----Promote to reform the assignment system of salary income and erect the incentive and control mechanism of revenue assignment. Perfect minimum salary system and push forward thoroughly salary guidance line and the guidance price system of salary in labor force market. Continue trying out the collectively salary consultation system, standardize the manner of salary payment and guarantee the labors' rights on obtaining rewards. ----Deepen the reformation of social security mechanism, accelerate its construction and positively perfect the experimental units of social security mechanism. Build credible and stable social security funds-raising mechanism, regulate financial expenditure structure, increase necessary inputs, enrich the security funds, coordinate rationally the payment rate and institution level, and improve the operational efficiency and the investment-yielding rate of social security funds. Perfect the macro-control and supervision system of social security, enhance management level and working efficiency, promote social security system to operate stably, healthily and orderly. ----Consummate basic endowment and medical insurance system and encourage the qualified employment units to set up the enterprises' annual pension and supplementary medical insurance for the workers. Perfect further unemployment insurance system and bring the basic endowment insurance system for the laid-off workers in the state-owned enterprises in line with unemployment insurance. Quicken up the construction of officially wounded and childbearing insurance. Perfect the basic endowment insurance system for the government and institutes. Standardize the minimum living security system for urban inhabitants. Accelerate community construction and stimulate the socialized social security. Explore various security forms and push forward the construction of rural basic security system. Perfect the policies of social relieve, social mutually aid, care and aftercare and social welfare, safeguard the legal rights of women, minors, senior citizens and disabled persons. ----Build up the social security funds supervision and management system combined by administrative supervision, social supervision and interior control of the institutes. Explore the ways for investment management while establishment and perfection social security system, erect the funds supervision and management system that matches with funds management system according to the management principles of different funds for security projects, try to maintain an increase the value of funds, eliminate the operational risk of social security funds and maintain social safety and stability. ----Accelerate the construction of labor and social security legal system, perfect labor and social security supervision system, constantly improve the supervision tipstaff's comprehensive qualities, evolve various kinds of supervision activities and promote the organic combination of supervision and execution of labor security and legal supervision of various walks of life. Enhance the systematic construction of labor security management information and popularize scientific results, improve the construction of labor and social security management to scientific, standardized, legalized and informative level. Participate continually the activities in the fields of international labor and social security, cooperate and communicate broadly with the outside world, further exert China's promoting role in international labor affairs, adapt to the environment of China' entry into WTO and spare no efforts to achieve new development in boosting the cause of labor and social security.