ABSTRACT
This chapter aims to identify the weakest link in the pension system and solutions to this group of peoples' old-age security. Whether China will address this problem in a timely and effective manner will ultimately not only determine the wellbeing of its own people, but will have strong impact on the global market and citizens from other economies. China's pension reform has to be tackled by taking into consideration the unique complexity of a changing Chinese society featured by massive urbanization and demographic changes, changing ownership and the increasing relevance of non-formal sectors in employment and in the nation's economy. The chapter examines the ineffectiveness of the hard law approach in enforcing the private sector's pension contribution obligations with the launch of Labour Contract Law, in the light of the broad context of a weak legal culture in China. It recommends that local governments should formulate policies that could motivate and promote the practice of corporate social responsibility among SMEs.
