Abstract:

Since the 1990s, Chinese scholars havedelved deeper and deeper into the research of social models in Europe. Their studies have focused more on the areas of individual policy, including medical care, employment, labour market, aging issue, pension system, and have started to look at these issues from the perspective of what China could learn from European ways. In fact, the EU is a union of welfare states, not a welfare union. Social policy is a loosely harmonized area in the EU based on more or less voluntary cooperation between member states, whereas a cross EU welfare payments systemdoes not exist. EU’s social policiesare an inspiration for China, but the European models themselves have come under pressure and proved unsustainable lately. China should base its social security system on its own particular circumstances, of which the major constraints are underfinancing, insufficient coverage, geographical fragmentation and inefficient institutions. To attain a balance between a flexible and effective market economy and adequate social security provision remains to be the main internal challenge for China for several years, maybe decades.

Key words: social policy, European models, social security system in China