Senior Chinese officials announced a set of new policies on Monday aimed at stabilising employment and supporting the country’s export sector. The measures come as rising tariffs between China and the United States place added strain on the economy.
The announcement follows weeks of escalating trade tensions, with both nations imposing significantly higher tariffs on each other’s goods. Some duties now exceed 100%, disrupting manufacturing supply chains and placing pressure on factories across China’s industrial regions.
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Support for exporters and stimulus plans
At a press conference in Beijing, Vice Minister of Commerce Sheng Qiuping stated that financial support would be extended to export-oriented firms. The assistance aims to help companies secure new orders and reduce operating expenses, including rent.
Officials also signalled the potential for additional economic stimulus. The coordinated response involved senior representatives from the Ministry of Commerce, the National Development and Reform Commission (NDRC), the People’s Bank of China (PBoC), and the Ministry of Human Resources.
Zhao Chenxin, Deputy Head of the NDRC, confirmed that further policies are planned to encourage domestic consumption. He also announced the upcoming launch of a state-backed technology development fund. “These policies will be rolled out incrementally by the end of June,” Zhao said.
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Focus on employment
Protecting employment remains a top priority for the government. According to analysts at Goldman Sachs, around 16 million jobs in China are connected to exports bound for the United States. Officials acknowledged that rising trade tensions have had a direct impact on job security, especially in export-heavy sectors.
The Ministry of Human Resources introduced new subsidies to incentivise firms to hire recent graduates. Although exact figures were not released, the ministry indicated that the policy is part of a broader push to stabilise the labour market. Other initiatives include expanding vocational training, promoting entrepreneurship, and adjusting wage structures in industries facing labour shortages.
The urgency is heightened by a record 12.22 million university graduates expected to enter the job market this year.
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Youth unemployment and economic indicators
Youth unemployment continues to pose challenges. Data from the National Bureau of Statistics shows that the jobless rate for urban residents aged 16 to 24, excluding students, stood at 16.5% in March. Overall urban unemployment fell slightly to 5.2%, down from 5.4% in the previous month.
Economists at Goldman Sachs predict that the PBoC may respond to weakening employment conditions by cutting the policy interest rate by 20 basis points and lowering the reserve requirement ratio by 50 basis points by September.
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Outlook and growth targets
Despite the current pressures, Chinese authorities remain confident in achieving the full-year economic growth target of around 5%. China recorded a 5.4% GDP growth rate in the first quarter, surpassing expectations.
Monday’s announcements follow last Friday’s Politburo meeting, where leaders reaffirmed plans to introduce “targeted measures” for business support and expressed openness to further monetary easing.
Although the first quarter showed positive growth figures, the overall economic recovery remains uncertain. Investors and analysts continue to monitor the situation closely for signs of more decisive government intervention.
