China will change its social security system to better support the poor who have not received the proper attention at present.

The plan to reform the social security program and build a multi-layered social assistance system to better support the poor and vulnerable people in both rural and urban areas in the next two years is approved by the State Council.

Observers believe that these changes are very important, because the current social security system is no longer relevant and China needs to build a new system to meet social requirements.

The reform plan aims to reinforce achievements in the poverty reduction program that China is pursuing, while at the same time improving the welfare of its people.

The announcement also highlights the need to increase support for victims of emergency or disaster situations, including people with injuries, fatal illnesses, natural disasters, and epidemics.

The new system focuses on two groups of people, the poor and those in need of temporary relief because of a natural disaster or emergency, says Li Changan, an expert in labor economics at the University of Foreign Economics in Beijing.

According to Li, reform of the social assistance system is an important part of China's next five-year plan, starting in 2021, when it is expected to announce an end to extreme poverty by the end.

About 850 million Chinese are thought to have escaped extreme poverty in the past 40 years.

"What will happen to those who are still poor when our poverty reduction campaign ends," asked Li.

According to him, the new social security system aims to help people who are not in the current security system to meet their basic needs.

China introduced a program of ensuring minimum living standards, or "dibao", in urban areas since the 1990s. They expanded it to rural areas in the early 2000s.

However, the program has received many criticisms on many different aspects, including corruption.

Leaders in Beijing are well aware that the current system has some vulnerabilities and needs, said Geoffrey Crothall, communications director at China Labor Bulletin, a Hong Kong-based labor rights organization.

"Without reform efforts, the existing problems will only continue to get worse and could lead to some social unrest in the future," he said.

According to Crothall, a common problem with the current program is that the support money is too low, doesn't make much sense.

Since the establishment of the minimum standard of living system, the minimum wage increase of the local government has not kept pace with the average wage increase.

In a statement dated August 25, the State Council of China said that the standards under the "dibao" program should be adjusted to match with inflation and should take into account local income levels.

But Crothall argues that given government corruption in some localities, there is no guarantee that deserving people will receive assistance.

"In rural communities, it is usually the village leader who decides who is eligible for financial support to maintain a minimum standard of living," he said.

Crothall notes that changes to the new system must be certain that those who need the money receive support and are free of corruption.