Economy

Chinas Pension System： Three Employees Support One Retiree

Chinas 2013 Statistical Bulletin on Human Resources and Social Security Development indicates that the surplus of Chinas pension insurance fund has cumulated to RMB 2.8269 trillion， with around three employees supporting one retiree.

In 2013， the total number of people joining the national basic pension insurance system reached 819.68 million， an increase of 31.72 million over the previous year. The 2013 overall input to the basic pension insurance fund totaled RMB 2.4733 trillion， up 13.3 percent compared with the previous year. Expenditure of the fund stood at RMB 1.9819 trillion， a year-on-year increase of 18.6 percent， with a cumulative surplus of RMB 3.1275 trillion.

In 2013， the number of urban employees covered by the basic pension insurance system reached 322.18 million， an increase of 17.92 million over the preceding year. Among these， 241.77 million were employed， and 80.41 million had retired， respectively an increase of 11.96 million and 5.95 million over 2012. In other words， about three employees supported one retiree. This proportion remained at the same level as the previous year.

Construction of 2.86 Million Affordable Homes Underway

Chinas affordable housing program is progressing smoothly as construction begins on 2.86 million affordable housing units this year， latest data show.

The number accounts for around 40 percent of the seven million units planned for the whole year， said Feng Jun， chief economist of the Ministry of Housing and UrbanRural Development. Feng also said the central government plans to allocate RMB 198 billion to subsidize the program this year.

Approved in 1999， the program is designed to provide cheaper housing to lowincome families who have been edged out by runaway real estate prices. The government work report released earlier this year set a goal of more than seven million units， including 4.7 million for people living in shanties.

New Measure Ensures Ample Money Supply

The State Council recently decided that China should maintain a reasonable increase of monetary loans and social fi nancing. The country will lower the reserve requirement ratio （RRR） for banks whose loans for real economic activities， the agriculture sector and small and micro enterprises have reached a certain proportion.

The money shortage in Chinas fi nancial market in June of 2013 is still a fresh memory for many people which prompts them to believe the current slowdown in monetary loan growth will continue this year. In fact， this year has witnessed a steady growth of Chinas currency loan and social fi nancing. As of the end of April， supply of broad money had grown at the rate of 13.2 percent. In the fi rst four months， Chinas social fi nancing scale expanded to RMB 7.18 trillion with a new increase of loans of RMB 3.79 trillion. Financing structures have also been optimized. According to recent data from Chinas central bank， by the end of April， medium and long term loan balance of the service sector increased 15.5 percent yearon-year with the growth rate up by 1.8 percentage points. In contrast， medium and long term loan balance of those industries featuring excess production capacity has a year-on-year increase of 5.9 percent， 1.6 percentage points lower than last year.

New Report Suggests Environmental Tax to Rein in Air Pollution

China will take at least 15 years to eradicate hazy weather， according to the Report on Development of Chinas Low-Carbon Economy. The 2014 report concluded that authorities should consider environmental taxes in their attempts to curb air pollution. The report was released in May by the Institute of Global Low-Carbon Economy （IGLCE）.

IGLCE director Xue Jinjun， who edited the report， says that based on Chinas current levels of development and technology it will take China between 20 and 30 years to eliminate hazy days. As a large developing country with a population of over 1.3 billion， China is faced with a serious， broad and complex environmental problem. Taking into account the 50 percent urbanization rate and 50 percent ratio for its secondary industry， solving energy problems is an onerous task for China.

Therefore， the report recommends economic means to tackle hazy weather， covering a wide range of pollutant discharges involving water， air and solid pollutants.

In addition， the report also advises a radical change in economic development priorities， giving the environment a higher priority in state policies， and incorporating governmental commitment to environmental protection. Governmental commitment is suggested as a way of introducing environmental protection into the legal system， therefore creating for it a favorable social ambience.