Analysis-As parliament meets, China is yet to pass last year’s economic reform test

try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Middle East tensions rise as Iran promises retaliation $100+ oil back in play if Hormuz disruption worsens: analysts Wait for a 10% drop in the S&P 500 before buying the dip, Barclays says U.S. dollar seen strengthening as U.S.-Israel strikes intensify (South Africa Philippines Nigeria) Analysis-As parliament meets, China is yet to pass last year’s economic reform test By Reuters Economy Published 03/01/2026, 06:06 PM Updated 03/01/2026, 06:12 PM Analysis-As parliament meets, China is yet to pass last year’s economic reform test 0 By David Kirton, Liangping Gao and Ellen Zhang DONGGUAN, China, March 2 - 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 minimise 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. Wei, 23, prefers "more money now", rather than the better longer-term deal when the firm’s contributions into his social insurance account are factored in. Zhao, 37, wants the payments to reflect his full income. "No one thinks they need a safety net until something goes wrong," said Zhao as the two shared a "drunken goose" meal, a southern Chinese cousin of coq au vin. "Younger people don’t understand that." COMPLIANCE WITH COURT RULING REMAINS PATCHY Economists see the Supreme People’s Court ruling as a pivotal test of Beijing’s efforts to improve household finances and rebalance a...