CHINA needs to do more to increase employment and stabilize its property market. Top officials acknowledged this on Saturday (10/3). This was conveyed as policymakers struggled to revive the country’s slumping economy.
Beijing is grappling with a prolonged property crisis, high youth unemployment and a global slowdown that is hitting demand for Chinese goods. Youth unemployment reached an unprecedented 21.3% in mid-2023, before officials stopped publishing monthly figures.
Home prices have been falling for months. Several large property developers are struggling to stay afloat.
On the sidelines of the country’s annual parliament meeting on Saturday (9/3), officials acknowledged the difficulty in reversing both trends. “Overall employment pressure has not eased and there are still structural contradictions to be resolved,” said Wang Xiaoping, Minister of Human Resources and Social Security.
“Some workers face a number of challenges and problems at work and more efforts to stabilize work are needed,” Wang said. However, he said Beijing was confident it might maintain the stability of the employment situation.
Housing Minister Ni Hong, for his part, told reporters that improving the property market — which has long accounted for regarding a quarter of China’s economy — was still a challenge. “The task of stabilizing the market is still very difficult,” he said. He pointed to the state’s efforts to lower interest rates and lower down payments.
Also read: China’s factory activity declines for four consecutive months
Real estate companies that, “need to go bankrupt should go bankrupt and companies that need restructuring should restructure,” Ni said. He added that market players who harm the interests of society must be firmly investigated and dealt with in accordance with the law. Despite major problems with the housing market, he insisted that Beijing’s goal of avoiding systemic risks in the property sector remains intact.
Meetings in Beijing this week were dominated by economic and security issues. On Tuesday, world leaders set an ambitious growth target of around five percent by 2024. This target, according to analysts, is ambitious considering the challenges hampering China’s economy.
Premier Li Qiang acknowledged the goals were not easy to read given the remaining risks and hidden dangers in the economy. Investors have called for greater action from the state to shore up the sluggish economy. (AFP/Z-2)
#Chinese #Efforts #Expand #Jobs #Stabilize #Home #Market
