China
China’s youth face dismal job prospects
Xu Ke, 21, comes from a long line of university lecturers.
Yet his peers and people a few years older than him are all struggling with a major crisis in their lives: growing competition for a dwindling number of jobs as youth unemployment tops 20%, driven by a huge downturn in manufacturing and foreign investment.
“There aren’t many jobs, and the competition for the jobs there are is too strong,” said Xu, who is currently studying at a university in Minnesota. “Everyone is willing to do any job.”
“With everyone willing to do anything, wages are [kept] low, and benefits are poor,” Xu told Radio Free Asia in a recent interview.
Before the pandemic, most of his peers would once have expected to study for a teaching or liberal arts degree, before going on to land jobs as elementary and secondary school teachers.
But those days are long gone, Xu said, adding that the 20.4% unemployment rate among people aged 16-24 reported by the National Bureau of Statistics for April was likely only the tip of the iceberg.
“I would guess that the proportion of young people who can’t find a job at all is likely to be between 40 and 50%,” he said.
“After all, not everyone [with parents who work in the government] system can even get into senior high school, and not everyone in senior high school can get into college,” he said. He cited a government quota introduced in 2021 requiring 50% of junior high school students to take up places in technical and vocational schools, rather than senior high school.
Before the policy was introduced, around 60% of junior high-schoolers would have gone on to senior high, where they would then be eligible to take the grueling “Gaokao” university entrance exam.
Shut out
Some of Xu’s friends have now effectively been barred from a university education, and from the white collar jobs that education prepares them for.
Shut out of the system that raised them, they are forced to look for blue-collar jobs instead.
“Wages [in blue-collar jobs] are very low, and there is a lot of strenuous physical labor,” he said. “Some people can’t do it, or they can’t find [even blue-collar] jobs, so they basically spend their time waiting to get old.”
For 30-year-old Shan Wentao, it’s a familiar scenario.
Born into a working-class family in the eastern province of Anhui, Shan says even his peers can’t find work in the current economic environment, with dwindling opportunities in manufacturing and sharp falls in foreign investment.
“I tried to get a shift on a construction site, but there are more people [available to work] in the industry now, and the wages are getting lower and lower, while the work is pretty backbreaking,” he said.
One of Shan’s friends did land some construction work, but only lasted a few months due to health problems and non-payment of wages.
Yet for young working class people, “lying flat” – essentially doing nothing while living at home – is less of an option than it is for their counterparts with higher-level qualifications, as many are already married, and can’t live back home with mom and dad.
“There’s nothing to be done about it,” he said. “I get the impression they don’t want to do these jobs, but what else can they do?”
‘Revitalizing the rural economy’
A woman who gave only the surname Chen said she has a 17-year-old relative who is despondent about life after she graduates from vocational school.
“She says the teaching in the technical school is so bad that she isn’t learning anything, and that she’ll earn very little after she graduates,” Chen said. “She says it’s easier just to lie flat.”
“She doesn’t want to do manual work, because it’s too tiring, but her family doesn’t have the resources to send her to study overseas,” she said. “She is desperate, and confused about the future.”
National Bureau of Statistics spokesperson Fu Linghui told a news conference on May 16 that “the relevant departments are proactively introducing policies to provide targeted assistance” to help young people into work.
But media reports pointed to a rising number of college graduates in recent years, coupled with residual unemployment from previous years.
President Xi Jinping has called on young people to be less picky about the jobs they’ll accept, as well as lauding those who return to rural areas to “revitalize the rural economy.”
But his exhortations have fallen on deaf ears as the middle class cash out of the Chinese economy and join the “run” movement, seeking a new life overseas, often via political asylum in the United States.
“During the Mao era, the Chinese government promoted the relocation of educated urban youths to the countryside, through a combination of heavy political propaganda and various kinds of political pressure,” U.S.-based economist He Qinglian wrote in a recent commentary for RFA Mandarin.
But while more than 12 million have done so in recent years, the numbers don’t amount to much when taken alongside the hundreds of millions of rural residents who continue to move into China’s cities to find work.
“Of course the Chinese government knows very well that it won’t be able to get rural youths who have experienced the simplicity of urban life to pick up their hoes and bend themselves double over the land again,” He wrote, citing the rise of “Taobao villages” as people run online shops from rural locations.
She cited government balance-of-payments data as showing a 43% decline in foreign direct investment in China in 2022, compared with the previous year.
“Foreign-invested companies are gradually withdrawing from the Chinese market, which is a big blow to employment rates,” she said, adding that youth unemployment rates would be higher still if the government didn’t remove people returning to rural hometowns from the figures.
Translated by Luisetta Mudie. Edited by Malcolm Foster.
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China
Navigating Turbulent Waters: Trust Between China and the Philippines
Despite a July 2024 deal ensuring Philippine resupply missions at Second Thomas Shoal, tensions with China persist, marked by confrontations and deep distrust, indicating potential for future conflict escalation.
Ongoing Tensions in the South China Sea
Despite a July 2024 agreement facilitating uninterrupted resupply missions to the contentious Second Thomas Shoal, tensions between China and the Philippines remain significantly high. Increased aerial and naval confrontations in August, compounded by longstanding mutual mistrust, hint at a precarious situation. Both nations are employing legal strategies alongside military maneuvers, while China’s recent maritime regulations and the Philippines’ military modernization efforts suggest a future marked by conflict.
Rising Provocations and Distrust
The situation deteriorated further in June 2024, when Manila accused Chinese forces of intercepting its boats and injuring a sailor. Although the July deal allowed for a resupply mission without incident, broader tensions persisted as China reportedly fired flares dangerously close to Philippine aircraft in August. The incidents at Second Thomas Shoal illustrate the deepening security crisis that has persisted since 2021, as China continues to challenge Philippine resupply efforts.
Potential for Escalation
While the recent agreement may offer temporary relief, it is unlikely to resolve the long-standing maritime disputes in the region comprehensively. The continuing misinterpretations of the deal and the profound distrust between the two nations suggest an ongoing trajectory of escalating tensions. As disputes over competing claims in the South China Sea intensify, the situation at Second Thomas Shoal serves as a volatile flashpoint for future conflicts.
China
Is life getting better for China’s tech billionaires?
Pony Ma, Tencent co-founder, is China’s richest person with over A$65 billion. Despite past crackdowns, his wealth indicates a potential market recovery, while maintaining state control over the economy.
According to the latest Bloomberg Billionaires Index, Pony Ma, co-founder of Tencent Holdings, is once again China’s richest person, now with a net worth of more than A$65 billion, placing him 27th globally.
Close behind him in the rankings are bottled water tycoon Zhong Shanshan, and Zhang Yiming, the main co-founder of tech giant ByteDance, which owns TikTok.
Only a few years ago, China’s ruling Communist Party launched a crackdown on billionaires and other business leaders. Some were publicly jailed. Others simply disappeared from public view.
Ma’s resurgence might seem like a positive signal of a more permissive market environment. But as we watch China’s private sector grow, we should remember it follows China’s unique playbook.
The ascent of Tencent
Ma’s wealth primarily comes from his stake in Tencent, which he co-founded in 1998 with its headquarters in Shenzhen. As China’s economy grew, Tencent became a world-leading internet and technology company.
Tech billionaire Pony Ma at a government meeting in 2018.
Song Fan/AP
Tencent is well-known for QQ and WeChat, which quickly became two of the most popular instant messaging apps in China and connect more than a billion people.
Tencent is also the largest video game vendor in China, with popular games such as “Honour of Kings” and “League of Legends”.
Last month, Tencent released “Black Myth: Wukong”, China’s first-ever “AAA” video game. AAA is a globally recognised gaming industry buzzword that refers to major, high-budget, standalone productions.
The much-hyped game surpassed 10 million sales across platforms within three days of its release, becoming one of China’s most successful games of all time.
The game itself draws on a 16th century Chinese novel called “Journey to the West” and features various Chinese landscapes. Its popularity aligns with Beijing’s ongoing efforts to boost China’s international cultural appeal.
China’s state-owned media outlet Xinhua highly praised the game for “telling Chinese stories with world-class quality” and offering a new way for global players to understand Chinese culture.
Ma’s fortunes reflect his company’s
This official appraisal means a lot. In previous years, Tencent has had a challenging time coping with Beijing’s strict gaming regulations.
In August 2021, China’s video game regulator announced policies to limit online gamers under the age of 18 to only one hour of play on Fridays, weekends and holidays. This was a major blow to China’s gaming industry, including Tencent.
In December 2023, Beijing introduced more legislation aimed at further capping the amount of money and time that could be spent on video games. The announcement resulted in a 12.4% drop in Tencent’s share price. But the company still promised to strictly implement any new regulatory requirements.
The success of ‘Black Myth: Wukong’ reflects an improving outlook for Tencent.
Andy Wong/AP
A cautionary tale
In China, complying with state regulations is important. Another Chinese tech billionaire, Jack Ma, faced the consequences of publicly challenging them.
In 2020, Jack Ma was poised to launch what was set to be the world’s largest initial public offering (IPO), raising about A$50 billion for his financial technology giant, Ant Group.
However, after he gave a speech in Shanghai harshly criticising Chinese financial regulators for outdated rules and excessive intervention, regulators halted the Ant Group IPO.
Citing concerns that Ant Group’s e-finance products encouraged unrestrained borrowing and investment, China ultimately suspended the IPO in late 2020.
Over the following years, Ant and its affiliate company Alibaba were slapped with billions in fines for alleged breaches of financial regulations.
Getting on the front foot
This phase marked a much stricter regulatory posture from China. The tech tycoons had to adapt to a new reality.
In 2021, Pony Ma publicly stressed the importance of tightly regulating internet businesses, including his own. He also proactively volunteered to meet with antitrust authorities.
Tencent downsized by divesting stakes in various sectors, and the government demanded a restructuring of its financial business.
Many of China’s other billionaires heeded lessons from Jack Ma’s troubles at Ant Group.
Alex Plavevski/EPA
The party remains the ultimate authority
China’s economy is a “socialist market economy”. That is, China’s government thinks of the market as a useful tool to achieve socialist objectives.
That doesn’t mean the private sector doesn’t play a huge role, but the government has long been cautious about the emerging market power of oligarchs as a potential threat to the party’s authorities.
Over past decades of reform and opening up, Beijing has been committed to unleashing market forces, encouraging private sector development and modernising its financial institutions. The precondition is that the state should maintain the ultimate authority to regulate and mobilise market resources.
However, its economy has been stubbornly sluggish post-COVID. The clampdown on the private sector has undermined the confidence of many investors and entrepreneurs, which is crucial for restoring China’s economic vitality.
Last year, Beijing introduced a 31-point action plan in response, aiming to make the private economy “bigger, better and stronger”. Hours after its release, Pony Ma publicly praised the government’s move as “encouraging and inspiring”.
Could spring now be coming for China’s private sector? Perhaps, but only on China’s terms.
Remember, market development is always a means for the state to achieve its own ends. This will never be a story of the market growing while the state steps back.
This article is republished from The Conversation under a Creative Commons license. Read the original article.
China
Zhejiang Province Increases Marriage Leave to 13 Days
On September 27, Zhejiang Province expanded marriage leave from 3 to 13 days for legally married employees. The new regulations ensure continued pay and benefits during leave and address demographic challenges by encouraging population growth. Businesses must update internal policies accordingly.
On September 27, the 12th meeting of the Standing Committee of the 14th Zhejiang Provincial People’s Congress approved the Zhejiang Province Marriage Leave Regulations (hereinafter referred to as the “Regulations”), extending the marriage leave to 13 days from three days.
According to the Regulations, employees who legally register their marriage are entitled to 13 days of marriage leave, excluding national statutory holidays and rest days. During the marriage leave, employees’ wages, bonuses, and other benefits will continue to be paid by their employers.
Notably, to ensure a smooth transition between the old and new leave regulations and to minimize disputes following the implementation of the new rules, the Regulations state that employees who registered their marriage within one year before the implementation of the new regulations and have not yet taken their marriage leave will be entitled to the new 13-day leave. Those who have already taken their marriage leave can supplement it according to the new regulations.
Businesses with operations in Zhejiang province are advised to amend their internal leave policies and employee handbook as soon as possible.
The extension of marriage leave in Zhejiang Province is part of a broader effort to support population growth and address demographic challenges. The province has seen some positive effects from its initial fertility support policies, which have helped to slow the sharp decline in birth rates.
*Granted to those who take pre-marital checkups, which involve being checked for any health conditions that will affect childbirth.
| This article was first published by China Briefing , which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in China, Hong Kong, Vietnam, Singapore, and India . Readers may write to info@dezshira.com for more support. |
Read the rest of the original article.
- Navigating Turbulent Waters: Trust Between China and the Philippines
- Is life getting better for China’s tech billionaires?
- Zhejiang Province Increases Marriage Leave to 13 Days
- China ETFs Celebrate Beijing’s Stimulus Initiative
- From Bubble Tea to Business Partnerships: Exploring China-ASEAN Trade Integration
- With China seeking AI dominance, Taiwan’s efforts to slow neighbor’s access to advanced chips needs support from the West
