China to strengthen social security system in five-year plan
TL;DR
China's 14th Five-Year Plan prioritizes expanding social security, covering over 1 billion people in pensions and healthcare by 2025 to address aging and support growth. It includes housing, job creation, and fiscal reforms to enhance efficiency and equity.
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China to strengthen social security system in five-year plan
China to Strengthen Social Security System in Five-Year Plan
China’s 14th Five-Year Plan (2021–2025) has prioritized expanding and modernizing its social security system to align with broader economic and social development goals. By the end of 2025, the country reported 1.08 billion people covered by basic pension insurance and 1.33 billion under basic medical insurance, reflecting significant progress in broadening social safety nets. These efforts aim to address demographic challenges, including an aging population, while reinforcing economic stability.
The National Bureau of Statistics (NBS) highlighted that China’s social security expansion is part of a strategy to ensure sustainable growth. In 2025, the government initiated or secured 1.21 million units of subsidized housing, underscoring its commitment to improving access to essential services. Concurrently, employment policies supported the creation of 12.67 million new urban jobs in 2025, with residents’ per capita disposable income rising 5 percent in real terms, matching GDP growth.
The 14th Five-Year Plan also emphasizes fiscal and institutional reforms to enhance the efficiency of social security programs. Preferential tax and fee policies reduced corporate burdens by 2.9 trillion yuan in 2025, partly channeling resources into social welfare initiatives. Additionally, China’s focus on green and low-carbon development, including a 30.4 percent share of clean energy in total consumption, aligns with long-term goals to balance economic progress with social equity.
These measures are critical to maintaining public confidence and supporting China’s role as a global economic stabilizer. With GDP exceeding 140 trillion yuan in 2025 and contributing approximately 30 percent of global growth, the country’s social security advancements are seen as foundational to sustaining momentum in the next phase of its development. As the plan nears its conclusion, continued emphasis on institutional openness, innovation-driven productivity, and equitable resource distribution will likely shape China’s social and economic trajectory.