søndag 19. april 2020

What might affect more people than the coronavirus? Unemployment in China

The most-feared outcome of the economic fallout caused by the coronavirus pandemic is mass lay-offs, as job creation and employment are key policy objectives for any government under any political system.

This is all the more so for  China’s ruling Communist Party, as its legitimacy of rule is largely based on its capacity to deliver growth and raise people’s living standards under an undemocratic system.
However, the leadership will soon have to deal with its most severe challenge as  China inevitably faces record-breaking unemployment amid an unprecedented pandemic. Even before the outbreak of Covid-19, the party was struggling to prevent  the world’s second-largest economy from spiralling into a slump – risking mass lay-offs – as it tangled with rising debt, cooling domestic demand and an escalating trade war with the United States.