Social Insurance Equity

Foreigners working in China will be able to enjoy equal social insurance benefits as Chinese citizens as the newly passed Social Insurance Law gives legal permission to it.

The law, adopted by the Standing Committee of the National People's Congress (NPC), China's legislature, on October 28, will take effect on July 1, 2011.

"It complies with the international custom to encompass foreigners into the domestic social insurance system (which covers five forms of insurance: basic medical insurance, worker injury insurance, unemployment insurance, maternity insurance and basic endowment insurance). Many countries have already adopted this practice," said Hu Xiaoyi, Vice Minister of Human Resources and Social Security.

Hu introduced that to avoid foreign workers to pay into repetitive social insurance both in China and their home countries, China will sign bilateral agreements on social insurance with other countries. "For example, China and Germany have signed an agreement allowing their citizens to receive social insurance in their workplaces, avoiding repetitive registration and costs. This offers us a model for resolving similar problems with other countries," said Hu.

The law doesn't specify how many types of social insurance foreign employees can get access to and whether the insurance participation will be compulsory or optional.

New Energy Plan

The long-awaited New Energy Industry Development Plan will be unveiled soon. The National Development and Reform Commission (NDRC) said the plan has been submitted to the State Council, and is likely to be put in place before the end of the year.

The draft of the plan was finished in April 2009 and then underwent amendments. The final plan will mainly cover four aspects: the status quo of the new energy development, ideas and principles of developing the industry, targets and tasks, and necessary policies to foster the industry's development.

According to Liang Zhipeng, Director of the New Energy Office under the NDRC, the plan is expected to attract a total investment of 5 trillion yuan, or $746 billion, by both governmental and non-governmental organizations.

Industry insiders see the plan as an implication of huge opportunities for both domestic and foreign investors. "It does not only signify big potential in new energy development such as nuclear, wind and solar power, but also a technology upgrading in capitalizing traditional energy like coal, oil and gas," Liang said.