EU-China cooperation on social security MISSOC meeting Nicosia, 26 October 2012 Rob Cornelissen

Background In framework of Development cooperation, EU holds dialogues on social protection with an increasing number of partner countries: South Africa-EU Strategic Partnership Action Plan EU-India Action Plan Brazil-EU Strategic Partnership Joint Africa-EU Strategy China-EU High level roundtable on social security

Memorandum of Understanding Signed in 2005 Does not foresee any specific issue to be addressed for roundtables on social security Discussed and agreed during bilateral meetings taking into account policy priorities Top level meeting in Bejing, September 2012

Bejing meeting September 2012 EU-China Social Protection Reform project. Currently in formulation phase within DG DEV. Supports China's introduction of a social protection strategy aimed at more social equity throughout its society (capacity building, full coverage of pension insurance schemes throughout the country). DG DEV intends to attribute management of project to MS social security agencies EU-China dialogue on health and safety at work (in particular mine safety) Main issue: negotiations of social security agreements between EU MS and China

New Chinese social insurance law 15 October 2011: new social insurance law in force All persons employed in China more than 3 months insured under Chinese social security system (lex loci laboris) Contribution rate varies, but are in general high (Bejing: for employers:32%, Shanghai:37%;overall rate often 48%) Penalties for companies who do not register their employees working in China for social insurance Social insurance covers old-age, unemployment, sickness, maternity and accidents at work

New Chinese social insurance law Reaction EU: positive development But system is new. No international agreements in place (except agreement China-Germany 2011) allowing exceptions for posted workers insured in country of origin Consequence: double contributions for employer and employees involved EU delegation in China: many complaints from businesses

Discussions Administrative Commission and Council 2012 Commission Communication 2012 : advocated idea of EU social security agreement with third countries Economic and Social Committee: many speakers support idea Support also from other sides: ILO, business and ETUC, MEP's But: opposition from many MS: preference for bilateral approach

Informal Network on negotiating agreements with China Informal network on "negotiating social security agreements with China" set up. Purpose: pool information and experience Feedback: China follows standard approach with all countries. Interest only in copying existing agreement with Germany: "posting agreement": reciprocal exemptions from making contributions in respect of unemployment and old-age pensions. China not interested in aggregation of periods nor in equal treatment provisions. Importance of a single social security liaison point for queries

Meeting DG EMPL-China, September 2012 On request of some MS in informal network DG EMPL the importance of including the principle of non-discrimination on the basis of nationality in social security agreements was underlined. China not interested in having a single agreement with EU rather than bilateral agreements with MS. There is only one single international social security contact point: Deputy Director General Mr. Dai Xiaochu (Ministry of Human Resources and Social Security)