The state of China’s economy is a “major concern” to delegates at the annual meeting of the People’s Congress of the ruling Communist Party of China. The Chinese economy suffers from several ills.
One of these ills is the employment of young people and recent graduates. Youth unemployment in China is high. It is currently unknown exactly how high the rise is, because the Chinese statistics agency has stopped publishing figures. They will be very politically sensitive.
In addition, the real estate sector is also an ongoing problem for the Chinese Communist Party. This sector once represented about a quarter of the Chinese economy, but real estate companies took on a lot of risk when obtaining loans.
Due to the downturn in the real estate market, these companies often fell into debt. Many construction projects are now on hold.
Moreover, the global economy is slowing down. China is the world’s largest exporter and therefore suffers greatly from this. In 2023, the world’s second-largest economy grew by 5.2 percent. This is the smallest growth of the Chinese economy in decades.
According to a Chinese Communist Party spokesman, the fundamentals of the Chinese economy are strong enough to withstand external shocks and internal difficulties.
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