||Chinese Social Insurance System is established by Labor Insurance Regulations of the People's Republic of China 1951 which regulates endowment insurance system of enterprise labors. Under the planned economy system, social insurance institution aims to serve national domination, and its political and social control meaning outstrip taking care of people. In rural area, the basic unit is the people's commune, and it prides the lowest standard of offering to elders. PRC puts no resources up. In urban area, the basic unit is national enterprise, and it prides “from cradle to grave” care to enterprise labors. This contrast forms dualism between rural and urban area, and shows a phenomenon of critical social unfair.|
After Reform, out of economic development grows fast, reform of national enterprise, and aging of population, intrinsic endowment insurance system is no longer useful. Therefore, enterprises start to innovate or offer endowment insurance in the highly developed rural and urban area. They try to react to ageing population and reduce national financial burden, by rising cover rate of endowment insurance, and collective funding responsibility of national, social, and personal dimensions.
The development model of Chinese endowment insurance is basically as the same as developed countries. However, China has huge population, broad territory, and unbalanced development between regions. About 70% populations live in rural area, and they are poor. The key to Chinese endowment insurance is capabilities and will of rural enterprise labors and peasants. Chinese endowment insurance is a hard work and it is a long road to establish a unified endowment insurance system and to realize social fair.