Impact of Reforms on the Labour System in China

Reform in the labour system in China signalled a major departure from the past socialist allocation system which equated the right to work, with life-long tenure employment, egalitarian wages, and comprehensive welfare for selective sectors of the urban workforce. A historical review of the evolutions of three major components of the labour system, namely employment, wage, and welfare, clearly indicates a total departure from the socialist ethos. Reliance on the market force in shaping new labour policies entails the glorification of competition and individual achievement. Under the principles of deregulation and decentralisation, lifelong employment is replaced by a contract labour system, wage is linked to performance and productivity, while the base comprehensive welfare package was replaced by a social security system.