The Myth of Chinese Exceptionalism: The Case of Welfare Transition in a Globalized Economy

China’s social welfare system in the past three decades has undergone a fundamental transformation. This process is part of a general movement occurring in the developing world in the new context of globalization. Globalization has produced a structural change of preferences among major social actors with regards to social protection, which in turn induces the governments to adopt a balanced and inclusive approach of social protection that is compatible to market competition and continuous development. What distinguishes China in achieving this objective is the combination of the government’s commitment to openness and its strategic policy adjustment that, working together, induce the vested interests from the public sector to accept the new institutions in a timely manner so that the welfare programs assist the economy in exploring the opportunities offered by the international market.