Will China Reduce Pension Contribution Rates to Lower Manufacturing Costs?

Editor’s Note: A recent report shows that China’s rates for employer contribution to pensions are on par with rates in European countries. China is also having trouble with Southeast Asian countries in the global labor market. To solve this, the government plans to reduce pension rates for Chinese workers in order to make the nation’s manufacturing sector more competitive. Chinese companies contribute an average of 39.75 percent of their employee’s pension funds. China is ranked 13th out of 173 countries for pension contributions by employers. This higher than the rate in the United States of 23.2%. China’s levels are closer to the levels of a European welfare state.A Chinese Welfare State?Data on retirement pensions in China was recently released by t...Read More>>