China unfolds employment support, plans stimulate us tension

Beijing – Higher Chinese officials on Monday outlined plans to support jobs and assistance to exporters, hinting

In a few weeks tariffs on Tit-TAT between the US and China have increased more than 100%, Condition of Chinese factories to stop at production And tell some workers stay home. Exports was a rare bright place in China’s economy, which has faced pressure from insufficient consumption and real estate.

“The labor market sustainability remains a critical problem for Chinese politicians, given its direct connection with social stability and recovery,” Goldman Sachs analysts said on Sunday. About 16 million jobs in China are estimated to participate in the production of goods exported to the United States

Authorities on Monday acknowledged the impact of trading tensions on export campaigns. China has repeatedly emphasized that consumption is its priority for the year. But the press conference on Monday focused on the efforts to stabilize employment.

The briefing took place after the Ministry of Human Resources on Friday announced subsidies for companies that hire recent graduatesBut did not indicate the amount. Officials who spoke on Monday talked widely about the plans to promote entrepreneurship, improve preparation for professional skills and better wages to employees in areas with “urgent” needs.

China will provide financial support for exporters so that they “have more confidence,” said the Schen Qiuping Deputy Minister of Trade, translated by CNBC.

He pointed to the latest measures together with the National Economic Development and Reform Commission, to help exporters sell at the domestic level products and reduce operational costs such as rent.

Shan performed together with high -ranking economic planning officials, the Central Bank and the Ministry of Human Resources.

In addition to existing employment pressure, Record 12.22 million This year’s higher education graduates go to the job market in China 430 000 from one year agoAccording to official data.

Chinese city level of the unemployed among those between the ages of 16 to 24 The National Bureau of Statistics. This noted a modest dive with 16.9% in the previous month. Total unemployment rate for working age’s population in cities In March, slightly decreased to 5.2% From a two -year maximum of 5.4% in February.

The People’s Bank of China seeks to reduce the speed when the job market looks soft, Goldman Sachs analysts say, citing a historical precedent. They predict that by the end of September, China will reduce policy rates by 20 basic points, while taking 50 basic points for the reserve requirements, or the number of cash banks that should be at hand.

Comments of Chinese officials on Monday followed a high -level political bureau meeting on Friday, which called Target measures to help businessesAnd he said that the Central Bank would reduce the rates as needed.

China is convinced that it can achieve its goal of about 5%, and will introduce a gradual incentive because the macroeconomic situation is changing, Zhao Cenixin, Deputy Head of Economic Planning, reports to journalists.

He emphasized that the policy to increase the consumption and creation of the State Development Fund will be implemented by the end of June.

Beijing has increased in economic support since the end of September, but still has not caused a large -scale incentive that many investors had hoped for. Gross domestic product grew higher than expected, 5.4% in the first quarter than a year ago.

“We believe that politicians are expecting greater clarity around the tariff impact before making a broader stimulus,” Louise Louis Louise said on Monday, a leading economist of the Oxford Economics. The gross product in the second quarter “It is very likely to slow down because the export disappears and more than offset the impulse for the investment that is charged.”