"This article discusses Chinese social policy development in response to the growth of the market economy. It provides a general overview of the system's evolution in three stages: (1) the pre-reform period when a system of enterprise welfare was in operation; (2) a period of system transition; (3) the stage when state welfare began to take shape. These developmental trends are interpreted on the basis of three types of institutional relations: the State-enterprise relation, the enterprise- (or employer-) employee relation, and the individual/worker-State relation. Moreover, the discussion deals with policy perceptions at each stage of the developmental process. Based on these analyses, it illustrates the transformation of the Chinese social security system in a broad socioeconomic and political context, where China struggled to establish a modern, market-based enterprise system. The paper thus expounds issues of socialism, market forces and the power of organized labour."

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