John Zhao and Charlie Wei are both unhappy with how their factory in southern China has responded to a landmark top court ruling in one of Beijing¡¯s biggest reform steps in recent years. But their objections couldn¡¯t be more different.

From September 2025, the court made it illegal for workers and employers to avoid social insurance payments, setting the stage for a long-term redistribution of resources from producers to consumers via the welfare system.

To minimize costs, the Dongguan-based auto parts supplier restructured salaries to pay contributions only on a base wage of around a third of their 12,000 yuan ($1,747) monthly income, said the workers, who now have to pay their share as well. They declined to name their employer.