The National Bureau of Statistics of the Communist Party of China recently released a series of economic data however there is still no data on the youth unemployment rate which is said to be intentional due to the current situation. Currently unemployment among Chinese youth is widespread to maintain stability and avoid risks from domestic public opinion. The CCP did not publish this data, a recent online video spread on social media highlights the challenging situation in places like Shenzhen Guangdong and KunshanJiangsu where a substantial number of young workers struggle to secure employment resorting to sleeping on the streets and facing eviction by landlords for inability to pay rent on time.
Regrettably this scenario is becoming increasingly common in major Chinese cities the challenge extends beyond young individuals affecting even the bread winners in families with multiple children who grapple to find work and sustain a livelihood amid this economic decline. The depiction of Le yuan labour market at 4:30 a.m. provides a panorama of the current unemployment situation in China. From early morning this place is filled with workers and laborers seeking employment competing with thousands of others each day for survival. It’s not just about finding a job it’s about having some income to pay for food and shelter for the day, in many once bustling and luxurious big cities suchas Beijing Shanghai Guangzhou and Shenzhen.
The current situation looks bleak young people and unemployed workers lack job sand income forcing them to sleep outdoors in long lines on the streets many families find themselves in difficult deadlock situations with no apparent way out. As thousands compete for a limited number of jobs pushing wages lower and lower the youth unemployment rate announced by the statistics Bureau of the Communist Party of China in July this year was21.3%. A record high research by Jiang Dangdan, associate professor at peeking University pointed out that in March this year the youth unemployment rate was as high as46.5% a significantly alarming figure that reflects the current situation in China. Mr Jang a resident of Kunshan, Jiangsu Province expressed concern stating, “what I often witness is that many people cannot find jobs next to our community there is a bridge hole where some migrant workers used to sleep however they have been forcibly removed and they are now prohibited from sleeping there. The government should assist those living on the streets or in the wild how can our country allow such a situation nowadays local governments are highly concerned about appearances and tend to drive away those facing homelessness as it is considered quite embarrassing”.
Starting from August Chinese Communist Party officials will no longer publish youth unemployment data to maintain a positive image for both domestic and international public opinion. Authorities have recently initiated the eviction of people sleeping near the Long Hua bus station in Shenzhen and other areas. Online videos depict police using steel Forks todis place homeless individuals in front of onlookers regardless of the dire circumstances faced by the homeless the city government provides no support in terms of food or shelter opting instead for cleanup and eviction. Many people are left with no alternative but to seek refuge in sewers or abandoned buildings in the suburbs. In another case people witnessed, young people relocating their belongings from under a bridge forced Away by the police Mr Woo a citizen of Guangzhou observes not only an increase in people sleeping on the streets but also a rise in unemployment and hunger. Mr Woo a Guangzhou resident, expressed “the economy is really bad now some are sleeping on the streets and others have no food I went to a restaurant and ask the owner how many such people he Encounters in a month he said about a dozen because many people cannot return home they have nothing to do when they get there so they endure the situation for a while”.
However, its feudal there are also many people under the bridge on the Pearl River and the government will drive them away damaging the city’s supposedly glorious image. The current CCP primarily focuses on self-preservation projecting an image of a powerful China while internally grappling with numerous corrupt officials seeking to accumulate wealth and potentially flee before the fall of the CCP dictatorship. Chinese citizens find themselves struggling and helpless in the face of life during the current storm of economic recession. Ben style, the director of International Economics at the Council on Foreign Relations, a US think tank recently told Voice of America that development opportunities for young people in mainland China have dried up and their living standards are expected to be lower than their parents’ generation potentially triggering social unrest in China.
Local governments are burdened by heavy debt and the CCP has banned the issuance of364 overseas bonds, according to Chinese Communist Party media reports China’s local debt has ballooned all provinces are heavily in debt fiscal revenue is ina state of negative growth and some local governments have gone bankrupt. For years China’s local debt has primarily been funded through loans from Banks and other financial institutions in the past 2 years banks have restricted credit access leading local governments to seek financing through various channels such as Bank financing, trust products, Securities investment and insurance investment.
Recently China’s Financial regulatory authorities under the Chinese Communist party instructed local government financing platforms to halt the issuance of364-day overseas bonds to address the loopholes in uncontrolled borrowing by local governments. Experts emphasize that issuing short-term overseas bonds is akin to consuming poison to quench thirst highlighting the dire state of local government debt, finding a lasting solution to this problem may prove to be a significant challenge. Reuters reported on January 8th that Chinese Regulators recently directed local governments to Cease the issuance of short-term overseas bonds with a maturity of less than one year due to regulatory gaps a 364-day overseas debt is a type of overseas debt with a maturity of less than one year. Given its lack of supervision by the national development and Reform Commission and simplified issuance procedures many urban investment companies view it as a life-saving straw for short-term liquidity using it to raise funds overseas and alleviate Financial pressure.
Urban investment companies acting as investment and financing platforms for local governments have reportedly raised a total of9 trillion US dollars, posing substantial risks to the Chinese economy in an effort to address local debt risks the CCP introduced a series of measures last year. Simultaneously, Bond issuance through financing platforms is now strictly regulated closing off avenues for short-term financing over the past 3years the Chinese economy has faced significant challenges exacerbated by the recent impact of the Epidemic. Since 2023 China’s real estate companies trust Asset Management institutions and other sectors have experienced severe shocks the property market and stock market have struggled to recover leading to a Resurgence in local government debt. Taiwan’s Financial expert Huang Shikang commented, “ many local governments are evidently on the brink without this financing platform we may witness numerous local governments facing financial pressure struggling to pay salaries and encountering similar difficulties more frequently, since last year various Industries in China have witnessed a surge in bankruptcies layoffs and unemployment the issue of unpaid wages for civil servants has become widespread across the country. Currently provinces are taking steps to streamline agencies and reduce the number of leaders in response to the economic challenges.
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