Abstract:Social market economy emphasizes that while protecting competition and giving full play to the market mechanism, the government should intervene at an appropriate level to ensure social justice. The establishment of the German long-term care services reflects state's emphasis on social justice. Because it not only includes redistribution in the form of insurance benefits, but also involves the provision of social services, so it is inevitable to consider market participation. The balance between social justice and market efficiency has been reflected in the early days of the establishment of the ‘Pflege-Versicherungsgesetz’. With the changes in society, the system continues to evolve, bringing about a gradual tilt in the balance between social justice and market efficiency. The rising proportion of personal costs, coupled with the marketization of professional care institutions, has increased social inequality. Therefore, as far as the long-term care services is concerned, the improvement of market efficiency has been placed in a more important position, thereby weakening social justice to a certain extent. China should further improve institutional construction, financial sustainability and service supply, in order to better balance social equity and market efficiency.