China's pilot program for the long-term care insurance (LTCI) system initiated in 2016, still remains in the exploratory phase regarding funding mechanism construction, relevant policy requiring refinement. Drawing on historical experience from Germany, Japan, and South Korea, as well as practice from domestic pilot cities, this paper analyzes critical issues in constructing China's LTCI funding mechanism. It proposes establishing LTCI as an independent social insurance type, adopting a contributory model of insured entities, establishing financing mechanism with multi-stakeholder participation, and implementing a gradual promotion strategy for insurance coverage while incorporating actuarial mechanism to ensure the sustainable development of long-term care insurance.