China will combine its urban and rural pension insurance systems to promote social mobility without concerns of loss of retirement income.
A unified pension system will help consumption, according to a statement posted on the central government’s website after a State Council meeting today led by Premier Li Keqiang.
The Chinese government is shifting focus to providing higher-quality public services and simplifying bureaucracy to stabilize economic growth and create more jobs. The world’s second-largest economy is forecast to expand by 7.4 percent this year, the slowest pace since 1990, according to the median estimate in a Bloomberg News survey.
China’s Communist Party leadership on Nov. 15 detailed changes including easing the one-child policy and scrapping aspects of the household registration system, or hukou, that impeded migration between villages and cities. The government is also ending a freeze on stock listings and seeking to curb pollution.