Abstract
Today, many economists start to show interest in the development of social welfare reform in China. They see it as a mean to increase domestic consumption, which suits the “New Normal” model advocated by Xi Jinping. However, the result of social insurance reform during Hu Jintao regime does not consolidate this assumption. The rapid pace of establishing new health insurance and pension system that are eligible to all rural and urban residents caused the further fragmentation of social security funds. In large cities, social security contribution became conditionality to obtain local household registration, thus excluded migrant workers from rural urban integration. Traditional social safety-net, i.e., family and land, continued to be the main risk reduction.
