Since the beginning of the new century, the political leadership in China has reconfirmed the role of social policy in social and economic development, and paid increasing attention to the people's livelihood and social constrution in facing of the change of social development. A round of rapid expansion of social policy has taken place in China since 2003. In doing so, on the one hand, the central government has formulated a series of new policies and programs to extend social security benefits to the general public; on the other hand, to protect the long neglected vulnerable groups by the implementation of new social policy. Chinese social policy expansion has strengthened the role of the government in social areas, promoted the building of the unified social policy regime, and brought about rapid growth of social organizations and social services. The local activism in social policy areas has also promoted the growth of local welfare states based on local social citizenship. However, Chinese social policy development still suffers from the challenges of rural- urban gap and regional disparities. Nevertheless, a social citizenship-based "social China" will be on rise and it will eventually erase social segmentation in China.