Published by ChinaMNC · Huaiyang

What Xi's New Article on 'People's Livelihood' Means for Foreign Founders Operating in China

A ChinaMNC briefing for foreign founders on the policy signals in Xi Jinping's Qiushi article on inclusive, basic and safety-net livelihood development — and how they shape the operating environment for registered companies in China.

Policy Signal in Brief

The 19th issue of Qiushi magazine, published on October 1, carries a major article by Xi Jinping, General Secretary of the Communist Party of China Central Committee, President of the PRC and Chairman of the Central Military Commission, titled “Strengthening Inclusive, Basic and Safety-Net Livelihood Development.” The piece is an excerpt of relevant remarks he made between November 2012 and January 2026, according to Xinhua. For foreign founders registering or running a company in China, the article is not a regulatory document, but it does set out the policy priorities that ministries and local governments are expected to align with — and that context is useful when you plan staffing, payroll, benefits and public-service-dependent operations.

The Core Message: Livelihood Comes First

The article states that in Chinese modernization, people's livelihood is of paramount importance. It describes the people's aspiration for a better life as the goal of the Party's work, and frames that goal as both ambitious and simple: enabling ordinary people to live better. It calls for safeguarding and improving livelihoods through development and for encouraging joint effort to create a better life.

For founders, the practical reading is that social and welfare outcomes are not treated as secondary to growth. Companies should expect continuing attention to how their operations affect employees' welfare and access to basic services.

Six Policy Directions Relevant to Employers

The article calls for a people-centered approach and for strengthening inclusive, basic and safety-net livelihood development. It highlights a set of policy objectives that map closely onto the topics foreign-invested employers deal with when they set up and staff a China entity:

• Basic public services: improve the system, raise service levels, and make services more balanced and accessible.
• Common prosperity: pursue it steadily as an overarching goal.
• Priority areas: coordinate work across education, income distribution, employment, social security, medical and health care, and housing.
• Life-cycle coverage: make progress on childcare, schooling, work income, medical care, elderly support, housing and assistance for the vulnerable.
• Fairness: promote social fairness and justice and strengthen people's sense of gain, happiness and security.
• Hardship cases: give particular attention and care to people in difficulty and help resolve their problems.

These are stated as policy directions, not as new obligations on companies. Still, they indicate the areas where local authorities may focus service delivery and enforcement, and where HR and compliance teams should pay attention.

Delivery Discipline and Fiscal Sustainability

The article stresses that livelihood work is directly visible to ordinary people and must not involve falsehoods; commitments made must be honored, one matter at a time and year after year. It also says work should be done to the best of one's ability and within one's means, balancing needs and possibilities, with livelihood protection and improvement grounded in sustainable economic development and fiscal capacity.

It further encourages people to improve their lives through hard work, so that improving livelihoods is both the direction of Party and government work and a goal of people's own efforts.

This pairing of commitment and fiscal prudence is a useful signal: policy support is expected to be phased and sustainable, not open-ended. Founders should plan benefits and staffing costs on a realistic, long-term basis rather than assuming short-term subsidies.

Economy and Livelihood Are Linked

The article states that the fundamental purpose of economic development is to better protect and improve people's livelihoods, and that attending to livelihoods is itself a form of pursuing development. It calls for integrating economic development and livelihood improvement: economic policies should embed livelihood requirements, and livelihood policies should consider their effect on economic growth, so the two reinforce each other.

For foreign founders, that linkage matters in two ways. First, policies that support employment, consumption and public services tend to support the domestic market your China entity sells into or sources from. Second, when local governments design measures, they may weigh both economic and welfare effects — which is relevant when you discuss investment plans, hiring or site selection with local authorities.

What This Does Not Say

It is important not to over-read the article. It is a compilation of general policy remarks. It does not announce new taxes, new employer contribution rates, new licensing rules or new incentives for foreign investment. It contains no specific figures, deadlines or implementation measures. Founders should treat it as background context for the direction of social policy, and continue to rely on specific laws, regulations and local implementation notices for concrete compliance decisions.

Practical Takeaways for Foreign Founders

• Watch the six areas. Education, income distribution, employment, social security, healthcare and housing are the stated priorities; changes in local service delivery in these areas can affect your employees.
• Budget realistically. The emphasis on sustainability and “within our means” suggests gradual, fiscally grounded policy moves rather than abrupt expansions.
• Keep employment practices sound. The focus on fairness, security and resolving hardship cases reinforces the value of clean payroll, social insurance and workplace practices.
• Engage locally. Because economic and livelihood policies are meant to be coordinated, local government conversations about your entity's contribution can be constructive.
• Verify specifics. Always confirm obligations with the competent local authorities or professional advisers before acting.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.

Need Help Setting Up or Running Your China Entity?

Foreign founders can contact ChinaMNC on WhatsApp or WeChat at +86 153 1898 8535 for help registering and operating a company in China.