The objective of this policy note is to assist the Chinese government in assessing implementation of the unemployment insurance (UI) program to date, identifying key challenges, and exploring possible policy responses. The note begins with a background section on recent developments in the country's economy and labor market and briefly describes the evolution of the UI program within this context. The note then provides an overview and analysis of the current UI program, touching upon critical issues such as coverage, benefit levels, effects on work incentives, provision of employment services, and financial performance. For this analysis, the note draws upon results from recent UI policy simulation pilots in Qingdao and Tianjin; lessons from a World Bank-supported UI technical assistance project in Liaoning province; interviews with government officials involved in UI; and various UI-related studies and project reports. The note concludes with policy recommendations and suggests some future directions for UI system reform.