Beijing, March 11 (BNA): The Chinese government hopes to create up to 13 million new jobs this year to help reverse a painful economic slowdown, the country’s second leader said Friday.
Premier Li Keqiang has promised “pro-jobs policies” including tax and fee cuts totaling 2.5 trillion yuan ($400 billion) for businesses, especially small entrepreneurs, according to the Associated Press.
Job losses surged after economic growth slumped to 4% over the previous year in the final quarter of 2021, down from the 8.1% expansion for the full year.
It followed a slump in the construction sector after Beijing tightened its controls on debt in its vast real estate sector, adding to pressures from the coronavirus pandemic and weak export demand.
“China aims to create 11 million – or preferably 13 million – urban areas in 2022,” Li said at a press conference after the conclusion of the annual meeting of China’s legislature.
Li called on Washington to scrap tariff increases on Chinese goods in a battle with Beijing over its technology ambitions, but did not indicate potential concessions or other initiatives to resolve the conflict.
The two governments’ trade envoys have yet to meet since President Joe Biden took office in January 2020. They spoke by phone but did not announce any plans for face-to-face talks or changes in their official positions.
Li said Chinese business leaders have spoken with support for tax cuts as the fastest way to generate jobs rather than government-led investment or coupons to families to boost consumer spending.
“We need to rely on market-oriented ways and means to solve employment-related issues,” he told me.
Economic growth slumped last year after Beijing tightened its grip on mounting debt in the real estate industry, which Chinese leaders say is dangerously high. This led to a slump in housing sales and construction, two important economic drivers.
Forecasters expect activity to weaken further before rebounding in the middle of the year. This is partly due to Beijing’s desire to rely on its traditional tool to encourage real estate investment, which could drive up debt and housing costs.
Li warned that global conditions were “extremely difficult” after earlier saying that achieving Beijing’s growth target would require “hard efforts”.
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