China is facing a great challenge over the coming decades in being able to meet its Social Security and Insurances System funding requirements in both the cities and countryside -including but not limited to health care insurance. This challenge will only grow as the population ages.

To help address this widening funding gap, the country should require that China’s SOE’s contribute a larger percentage of their net after tax profits into the country’s Social Security and Insurances System. Currently their net after tax profit payments to the government are relatively low, and do not fully reflect an equitable return on the SOE’s investment for the owner, i.e. China’s people. Earmarking these increased payments to China’s Social Security and Insurances System would have immediate and long-term benefits for the country and its economy as a whole.