China Expands Social Safety Net, Sparks Concern Over Small Business Impact

China has implemented a new policy requiring all employers to contribute to employee benefits, covering pensions, medical care, and maternity leave. This move has raised concerns that small businesses may face financial strain, potentially leading to job losses.

Outside a maternity hospital in Beijing last year. As of Sept. 1, all employers in China must contribute to benefits for their employees, to support their pensions, medical care, maternity leave and more.