MNI China Press Digest April 25: NEVs, Consumption, Employment

Highlights from Chinese press reports on Tuesday:

• The government should implement policies to maintain China’s competitive advantage in the new electric vehicle (NEV) market, as global competition heats up, according to Yicai. Western car manufacturers will develop quickly to catch up with Chinese competitors and can leverage strong R&D networks, robust supply chains, strong distribution channels, and worldwide brands. Chinese manufacturers have been first to exploit the scale effects of the battery industry which gives a strong cost advantage. Going forward, authorities should clarify and resume NEV tax exemption policies for 2023, and accelerate construction of swapping, and charging stations. Rural areas and the public sector need support to expand use of NEVs, Yicai said.
• China must expand the use of consumption vouchers and stabilise the property sector to secure the rebound in consumption, according to a report by the China Wealth Management 50 Forum. The forum said residents need policy support to boost incomes and maintain the Q1 consumption recovery. Although household income and confidence have improved, they remain relatively low with youth unemployment still an issue. The report suggested the government should implement market oriented reforms to solve the issue of overcapacity, which carried the risk of deflation. (Source: Yicai)
• Authorities will prioritise youth unemployment this year, as young people will help China’s future development, the Ministry of Human Resources and Social Security said. The ministry recently launched an initiative to address the problem, which will expand social security subsidies, tax exemptions and training subsidies for youth employment at SMEs. The public sector will also increase the number of available positions, and the government will implement a white collar work scheme to employ more young people in rural and minority areas.