The paper deals with the first steps of the PRC government aimed at reforming the social security system. In the 1950s-1970s social security system was limited and covered first of all families of party officials and public servants. During implementation of economic reforms, the social security system began to cover a wider range of workers. The PRC government studied the standard of living of various layers of the Chinese society. According to the data obtained the Chinese authorities began changing the policy on rendering the limited assistance to the most needing city dwellers. Country people haven’t been covered by the social security system and relied on own forces. This social policy led to social stratification of the Chinese society.