Chapter II Policy Support

Article 11 People’s governments at or above the county level shall make employment increase an important duty, and formulate overall plans for coordinating their industrial and employment policies.

Article 12 The State encourages various types of enterprises to provide more job opportunities by creating new industries or expanding business operation within the scope as prescribed by laws and regulations.

The State encourages the development of labor-intensive industries and the service industry and supports small and medium-sized enterprises in their efforts to provide more job opportunities through multiple channels and by diversified means.

The State encourages, supports and gives guidance to the non-public sectors of the economy in its effort to develop the economy, thereby to increase employment and provide more job opportunities.

Article 13 The State develops both domestic and foreign trade as well as international economic cooperation, thus to develop more channels for employment.

Article 14 When people’s governments at or above the county level make arrangements for government investment or decide on major construction projects, they shall pay attention to bringing into play the role of such investment or projects in promoting employment and providing more job opportunities.

Article 15 The State implements the fiscal policies which are favorable for the promotion of employment, increases the input of funds and improves employment environment in order to increase employment.

People’s governments at or above the county level shall, in light of the employment situation and the goal set for the work concerning employment, appropriate from their budgets special funds for employment promotion.

The special funds for employment shall be used as subsidies for job recommendation, vocational training, public welfare jobs, appraisal of occupational skills, special employment policies, social insurance, etc., and as guarantee funds for small loans and discount interest on small guarantee loans for low-profit projects, and shall be used to support the public services for employment. The measures for management and use of the special employment funds shall be formulated by the finance department and the administrative department of labor of the State Council.

Article 16 The State establishes a sound unemployment insurance scheme to ensure the basic living standards of the unemployed in accordance with law and to promote their re-employment.

Article 17 The State encourages enterprises to provide more job opportunities and to support the unemployed and the disabled in finding jobs and, in accordance with law, offers the following enterprises and persons preferential tax policies:

(1) enterprises that meet the requirement for hiring the unemployed persons who satisfy the conditions as prescribed by the State;

(2) small and medium-sized enterprises set up by unemployed persons;

(3) enterprises that reach the assigned proportion for employment of disabled persons, or whose employees are entirely disabled persons;

(4) unemployed persons who engage in self-employed businesses and meet the conditions as prescribed by the State;

(5) disabled persons who engage in self-employed businesses; and

(6) other enterprises and persons entitled to preferential tax policies as prescribed by the State Council.

Article 18 To the persons mentioned in Subparagraphs (4) and (5) of Article 17 of this Law, the relevant departments shall give due consideration in terms of business site, ect. and exempt them from administrative charges.

Article 19 The State adopts financial policies favorable for promotion of employment, open up more channels for financing small and medium-sized enterprises, and encourages financial institutions to improve financial services, by giving such enterprises increased support in loans and providing, within a given period of time, small loans, etc. to support persons who start undertakings independently. Article 20 The State applies an employment policy whereby to make overall plans for both urban and rural areas, establishes a sound system under which to provide equal job opportunities to both urban and rural people and give guidance to the surplus agricultural workers in their effort to find other jobs in an orderly manner.

Local people’s governments at or above the county level shall push forward the development of small towns (townships), accelerate the regional economic development of the counties, and give guidance to the surplus agricultural workers in their efforts to find other jobs at or near the places where they live. When formulating plans for small towns (townships), they shall include in the plans the employment of the surplus agricultural workers of their respective areas in other jobs as an important task.

Local people’s governments at or above the county level shall give guidance to the surplus agricultural workers in going to the urban areas for employment in an orderly manner. The people’s governments where workers are exported and imported shall cooperate with each other in improving the employment environment and conditions for rural people to find jobs in the urban areas.

Article 21 The State supports the development of regional economy, encourages cooperation between different regions and comprehensively coordinate the efforts for balanced increase of employment in different areas.

The State supports ethnic minority areas in their efforts to develop the economy and increase employment.

Article 22 People’s governments at all levels shall make overall plans for the employment of the new-arising workforce in cities and towns, of the surplus agricultural workers in other jobs, and for the re-employment of the unemployed.

Article 23 People’s governments at all levels shall take measures to gradually improve and implement the labor and social insurance policies adapted to such flexible employment as part-time jobs, in order to provide assistance and services to the persons who look for flexible employment.

Article 24 Local people’s governments at all levels and the relevant departments shall give better guidance to the unemployed in starting self-employed businesses, and provide them with policy consultation, vocational training, instructions on how to start a business and other services.