Chinese policies aimed at maintaining people\u27s welfare by assuring employment for all city workers attained a certain success. However, this success largely depended on administrative compulsory measures which confined rural people in rural areas and strictly prohibited them to move to large cities, and also administratively distributing city workers to government organizations and factories far beyond the organizational requirements, which "watered" organizations and destroyed their effectiveness and efficiencies. Chinese government suffered from this dilemma, and finally decided to save efficiencies by sacrificing employment assurance and peoples welfare. This paper analyzes the difficulties Chinese government have been facing
