In Depth: Blunting the Insecurity in China’s Gig Economy

China’s labor market is experiencing a fundamental transformation driven by a rapidly expanding gig economy that’s challenging traditional job categories and worker protections. The modern workforce encompasses delivery couriers, ride-hailing drivers, short-term contractors, part-time clerks, and a range of outsourced staff, all of whom often juggle multiple identities and face uncertain legal and social security protections [para. 1]. Analysts describe gig workers as a "massive labor reservoir," numbering tens of millions. These workers don’t neatly fit into existing employee categories; their jobs are shaped by fluctuating consumer demand, making social security eligibility difficult to determine [para. 2].

The legal ambiguity extends beyond platform-based work. Livestream hosts, online content creators, freelance cleaners, programmers, and designers face volatile incomes without stable safety nets. Most platforms do not pay social insurance for these workers, instead suggesting voluntary contributions, which many cannot afford [para. 3].

According to Xu Ke, director of the Digital Economy and Law Innovation Center, China’s problem isn’t so much the legal framework as the difficulty in its application. Xu proposes a portable, flexible social security system akin to a "USB-style" plan that workers could carry from job to job [para. 4][para. 5].

A crucial legal factor is whether a worker is defined as having a "labor relationship" with their employer. If a worker performs a company’s essential tasks, abides by its rules, and is supervised, courts generally establish a labor relationship, requiring social insurance coverage. However, many gig workers, such as delivery riders, operate under "service contracts," keeping them outside labor protections [para. 6][para. 7][para. 8]. Misclassification is addressed in law, and courts may reclassify workers as employees if companies exert significant control despite using service contracts, compelling them to pay missed benefits [para. 9].

Additionally, judicial guidelines now address "fronting" arrangements, making larger sponsoring companies liable for wages and workplace injuries when smaller entities or individuals use their licenses, easing legal recourse for affected workers [para. 10].

Gig workers represent a sizable proportion of China’s workforce. A 2023 survey counted 402 million workers, with 84 million in new employment forms [para. 11]. By late 2024, there were 7.48 million licensed ride-hailing drivers and 7.45 million active Meituan delivery riders, with daily instant delivery orders hitting 250 million, driven by JD.com’s entry and fierce competition [para. 12].

The Supreme Court’s latest interpretation invalidates agreements waiving mandatory social insurance payments and requires compensation for violations, effective September 2025, but mostly impacts stable employees rather than gig workers [para. 13][para. 14][para. 15]. Gig workers’ relationships with platforms often do not meet labor law’s strict criteria, leaving their insurance and protections in a gray area. High turnover rates further complicate matters; a study found half of delivery riders leave within a year and over 60% work multiple jobs, making regular insurance payments impractical [para. 16][para. 17].

Policy responses began in 2021 with recognition of gig workers’ status and a "three-category" labor framework. Social insurance pilot programs began in 2022, initially covering workplace injury and enrolling over 12 million workers by 2025 [para. 18][para. 19][para. 20][para. 21]. The State Council aims for broader, nationwide gig worker protections by 2026 [para. 22]. Platform companies like Ele.me, Meituan, and JD.com are also piloting insurance and pension programs, with JD.com notably offering full social benefits for all full-time riders [para. 23][para. 24][para. 25][para. 26].

Despite these experiments, China’s gig workers remain between old legal definitions and new economic realities. Balancing flexibility with protection is one of the country’s most urgent labor challenges as its economy continues to evolve rapidly [para. 27].