Intangible welfare? The new economy and social policy in China

This article explores the problems and challenges of the new economy for Chinese social policy. The rapid extension of a digital economy, an economy of artificial intelligence and e-shopping, may alter the configuration and basic functional pattern of social protection in China. Since the labour forces of various sectors are replaceable in the course of automation, traditional taxpayers and contributors to social insurance branches will decline in some highly automated sectors, causing sector-related dismissal and depleting the financial resources for social insurance in China. The phenomena of e-employment and e-commerce escape regulation by national tax and welfare regimes, leading to more employees being excluded from tangible social insurance benefits. Further, state revenues will keep decreasing in an epoch of thriving e-business since the tax evasion of e-employments is widely spread. Essentially, the legitimate basis of state-organized social policy will be shaken by the tide of the new economy. Against such backdrop, this article raises the new concept of 'intangible welfare', characterized by a high degree of fluidity and variability of investments, employment relationships, taxpayers and social insurance contributors. New forms of economy require new types of state regulation.