Why should China implement the dual-track system?

Reasons for implementing the dual-track system:

1. Dual-track system is a special product of the transition from planned economy to market economy, especially the "dual-track system" for pensions, which has been implemented since the early 1990s and continues to this day.

2. Dual-track system is a transitional pricing scheme adopted by China government in the stage of "incremental reform" to reform the price system. The formation of the dual-track system is the inevitable conclusion of summing up the previous practical experience and the result of game equilibrium after the interests of many parties are reconciled.

3. The dual-track system creates a rent-seeking space for most vested interest groups (such as government officials), so that they will not lose their original interests because of the reform, thus gaining the support of most authorities and reducing the political resistance to the reform.

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1. Dual track system is the symmetry of "single track system". The system of dividing inheritance into movable property and immovable property, stipulating different conflict norms and applying different substantive laws to deal with inheritance problems.

2. The legislative principles of technology import approval in People's Republic of China (PRC). Refers to the import of technology through technical trade or economic and technical cooperation, and the examination and approval shall be carried out in accordance with China's special legislation on technology import; Technology investment with technology as investment shall be examined and approved in accordance with relevant foreign investment laws and regulations.

3. Pension dual-track system:

The dual-track pension system (or dual-track retirement system) is a special product of the transition from planned economy to market economy. The so-called "dual track system" means that people with different employment natures adopt different retirement pension systems. In Li Yuhe's famous saying, the pension retired by government agencies and institutions and the pension retired by enterprise personnel are two cars running on the same road, but not on the same road.

Specifically, there are three differences:

First, there are different ways of overall planning: enterprise personnel are paid by units and employees themselves according to certain standards, and institutions and institutions are funded by the government;

Second, the payment channels are different: enterprise personnel are paid by self-raised accounts, and government agencies and institutions are paid by finance;

Third, the standards of enjoyment are different. The pension standard of government agencies and institutions is much higher than that of enterprise retirees. At present, the gap is about 3 to 5 times.

References:

Baidu Encyclopedia-Dual Track System