China is the world's largest developing country with a huge population, weak economic basis and unbalanced development among regions and between rural and urban areas. Perfecting the social security system is an arduous and heavy task.

    The Chinese Government has, with its people-first focus, attached great importance to the establishment and improvement of the social security system. According to the statistical communiqu�� up to the end of 2005, 174.44 million people were covered by urban basic old-age insurance, an increase of 10.91 million over the previous year. Of these, 130.82 million were employees and 43.62 million, retirees. By the end of 2005, 137.09 million people had participated in the basic medical insurance program, an increase of 13.05 million over the previous year. This included 99.59 million employees and 37.5 million retirees. Unemployment insurance and work injury insurance covered 106.48 million and 83.9 million people respectively, an increase of 640,000 and 15.45 million over the previous year.

    By the end of 2005, basic old-age insurance covered 40.02 million participating retirees of enterprises and the pensions were paid on time and in full. Laid-off workers entering the reemployment service centers in 2005 were provided with basic living allowance on time and in full, and their social insurance premiums were paid by those service centers. By the end of 2005, 3.62 million people benefited from unemployment insurance benefits. A total of 22.33 million urban residents received the minimum living allowance for the whole year, an increase of 278,000 over the previous year.

    Social welfare institutions offering adoption services were equipped with 1.5 million beds and took in 1.16 million people. Of the 170,000 community facilities built in urban areas, 9,705 were comprehensive community service centers. In 2005, welfare lotteries raised 41.1 billion yuan, while social welfare funds contributed 14.4 billion yuan and direct donations, 2.9 billion yuan.

    Between 2000 and 2005, the total income in, and expenditure from, the social insurance fund in China was nearly 700 billion yuan and more than 540 billion yuan, respectively. This helped guarantee workers their legal rights and benefits and played an important role in maintaining social stability and promoting economic development and social harmony.