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This review article discusses findings from current Chinese social policy literature about the dilemmas facing the Chinese government to reform China's residual social policies, from historic, socio-economic and political perspectives. It explores how human rights based policies and transparent management are beginning to be reflected in recent literature as the policy changes emerge from current social and political development in China. China is emerging as a new important international force, both economically and socially. Its social policies are at a turning point as it shifts to a middle developed country and as the world witnesses the emergence of a new welfare state.