Amid the current Covid pandemic, Communist China’s economy and government income are in a debacle. There is a risk that China’s Social Security System cannot afford pension payments.
As reported by Sina Finance, Minister of Finance Liu Kun replied to reporters during a press conference that local governments in certain areas of China cannot collect enough income to pay pensions. Liu indicated the pension fund crisis is only a local problem, and the national government can reallocate funds to support certain low-income areas. Liu explained the CCP government’s three measures to ensure pension safety: 1) The central government has re-allocated 215 billion RMB to the central, western, and old industrial areas. This measure will alleviate their financial costs. 2) China will implement an integrated pension system in which the central and local governments can share the burden. 3) Reasonable adjustment of pension payment amount by considering price level and wage increases. Liu Kun said China’s social security fund has 4.5 trillion RMB by the end of 2020 and has more income than spending overall.
Liu’s comments above should be taken with a grain of salt. Communist China’s propaganda either distorts the truth or downplays the severity of social problems. As shown above, Communist China’s government is already admitting that certain local areas may default on their pension payments. Social unrest and turmoil may erupt if the pension fund crisis expands throughout the country. The CCP has always had terrible records on providing essential services to the Chinese people. Mr. Miles Guo once explained that the CCP’s central government only allocated 100 million RMB in relief funds to the recently flooded areas in Henan Province, which is equal to 1 RMB per person for the 100 million population in that province. If the CCP is so miserly as to offer only 1 RMB per person on average to the victims of Henan flooding, would you expect it to be any kinder to the retired elderly? The Chinese Communist Party is a totalitarian regime controlled by kleptocrats who embezzle most of the nation’s wealth. As the kleptocrats enrich themselves at the expense of the common people, China’s social security system is going bankrupt sooner or later.