China faces pivotal welfare reform test as court ruling hits jobs, small firms

Hit by higher US trade tariffs this year, some factories have fired full-time staff and rehired them as day labour to save on pension, unemployment, medical and other insurance payments.

China’s top court ruling that makes it illegal for businesses and employees to avoid social insurance payments is stoking fears about jobs and the survival of small firms, forcing Beijing to confront the risks of long-promised welfare reform.