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At least 200 million people in China are employed in informal jobs, revealed a report read at an executive meeting of the State Council on Wednesday.
Chairing the meeting, Chinese Premier Li Keqiang pledged to take steps to “keep the payroll stable” and promote incentives that increase the creation of “stable jobs”.
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Family businesses, small industries and startups will be able to receive a loan of up to 200 thousand with subsidized interest;
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Local governments should make funds available to help reduce startup and incubator costs, such as discounts on rentals;
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The Council of State intends to implement fiscal policies that encourage the hiring of university students and improve the conditions of migrant workers, who leave their home provinces to work in large cities;
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Li announced new rules to safeguard labor rights in the country, including banning employees who test positive for Covid-19 from being fired.
While it does not solve the problem of informal workers, the State Council has promised to offer them some benefits. They will be able to enroll in unified pension systems and will be able to apply for medical insurance where they work.
“The current labor market situation has improved, but the pressure remains significant and should not be underestimated,” said the prime minister.
The meeting ended the promise of credit lines that encourage the purchase of sustainable appliances. The prime minister is betting on “consumption not only to improve people’s living conditions, but also as a tool to boost employment, investment and industrial modernization.”
why does it matter: the updated number of informal workers in the country is impressive and gives the dimension of the effects of the pandemic on the Chinese economy. It is not exactly surprising that two categories were mentioned by name: university students and migrants.
- In June, statistics released by the government showed that the unemployment level among young Chinese graduates was 18.4%, triple the national average.
Pressured to present high rates of employability, local universities began to deny the award of degrees to those who had not yet found a job after graduation.
what also matters
Following Chinese diplomatic advances, the US announced that it intends to invest at least US$600 million in the South Pacific islands and open new embassies in Tonga and Kiribati.
The move is an American response to the Chinese, which reached a security cooperation agreement with the Solomon Islands and even offered a comprehensive free trade agreement with ten of the eighteen island nations in the region in 2022.
At the Pacific Islands Forum, US Vice President Kamala Harris promised “a new chapter” in US relations with local leaders. She acknowledged Washington’s neglect of island countries and promised to “significantly deepen” its presence in the region.
The effort appears to have paid off: leaders gathered at the forum pledged not to sign security cooperation agreements without reaching unanimity. It was a setback for Beijing, which had been trying to convince opposing voices by appealing to the majority with promises of investment.
Hundreds of people were dispersed by police after a protest outside a branch of the People’s Bank of China in Henan province on Sunday (10). Protesters in various parts of China were demanding a response from the government in the case of four banks that froze withdrawals, affecting thousands of customers.
The suspension, so far not explained by either the bank or the government, started a bank run by people trying to recover their reserves. The case has led to speculation about the financial health of small financial institutions in the country.
In videos posted online, police appear beating protesters. According to the Financial Times, there have been cases of people with eye injuries and broken bones by security forces.
Keep an eye
Fighting the mass exodus of migrants and foreigners after more than two months in a restrictive lockdown, the Shanghai government has announced that it will expand the local hukou grant program to young graduates from more than 30 Chinese universities. Previously, only those with a master’s degree from elite institutions were entitled to apply for the document.
Understand: created in the 1970s, the hukou is a birth certificate that guarantees access to social protection and health and education services only at the place of registration for the child and the parents. Touted as a major generator of inequality, the system discourages migration to large cities, where basic services are more expensive and there is no federal government subsidy for those who come from other regions.
why does it matter: Shanghai’s move is aimed at attracting young talent, alleviating relocation costs in China’s most expensive metropolis and replenishing the local job market, which struggles to replace thousands of idle jobs after the lockdown.
to go deep
- The Sixth Tone portal revealed in a report this week an extensive Chinese trafficking scheme in Cambodia. The text shows how an intricate system of financial fraud, fake WeChat groups and financial insecurity led to several people being enslaved in the neighboring country. (free, in english)
- SupChina brings the story of the startup Adopt a Cow, which preaching the well-being of cows, (including a relaxing bath, classical music concert and even a spa) is revolutionizing the dairy market in China. (porous paywall in english)
- The recent wave of Covid took a while, but it finally reached Macau, a city known for gambling in dozens of casinos. The South China Morning Post speculates whether this could be indicative of economic decline in the city. (porous paywall in english)
