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flag In 2026, most Chinese firms still evade a 2025 court order to fully pay social insurance based on actual income, undermining efforts to boost consumption and reform the safety net.

flag In March 2026, China faces widespread non-compliance with a 2025 Supreme People's Court ruling requiring full social insurance contributions based on actual income, aimed at boosting domestic consumption and strengthening the social safety net. flag Only about one-third of firms are fully complying, as many restructure wages or classify pay as bonuses to reduce contribution bases. flag Employers cite financial strain from weak demand, tariffs, and overcapacity, while workers struggle to afford their share. flag Despite official claims of steady progress, enforcement remains inconsistent, highlighting a growing tension between short-term economic survival and long-term structural reform goals.

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