New Chinese Social Security Reform Slaps Extra $300 Billion Tax on Enterprises and Workers

New Chinese Social Security Reform Slaps Extra $300 Billion Tax on Enterprises and Workers
Elderly Chinese people serve themselves lunch at a nursing home in Sha County, Fujian Province, China, on March 17, 2016. Kevin Frayer/Getty Images
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News analysis
A social security tax reform introduced by the Chinese authorities this July has been criticized for putting more pressure on small-to-medium enterprises. Employers and employees will have to foot an estimated extra 2 trillion yuan (about $300 billion) annually in order to comply with the updated tax, which will take effect in 2019.