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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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)