||This thesis is concerned with the process of introducing market principles in the field of employment and social security (including health care and housing) in China since 1978. The main objective is to show how the economic reforms have influenced the social assurances of the Chinese people. The first chapter describes the social system in China before 1978 and then outlines the reform movement after 1978 emphasizing the enterprise reform. The second chapter is devoted to the employment topic—the emerging labour market, massive lay-offs and the formation of unemployment. The third chapter deals with development of the social security system—in particular the introducing of social insurance. Forth chapter completes the thesis with the rewiev of changing health care and housing systems.