MNI China Press Digest Dec 30: Economy, Consumption, Jobs

Highlights from Chinese press reports on Friday:

• The central government should show it is determined to develop and expand the private economy, and combat arguments that may weigh on market expectations such as “common prosperity means robbing the rich to aid the poor”, 21st Century Business Herald reported citing Yang Weimin, deputy director of Committee for Economic Affairs of the National Committee of the Chinese People’s Political Consultative Conference. It is necessary to abolish measures that are unfair to the private economy and remove hidden barriers, and officials at all levels should solve problems and do practical things for private enterprises, Yang was cited as saying. The 20th National Party Congress proposed “promoting the development and expansion of the private economy” for the first time, Yang added.
• More government policy support could help consumption be a core pillar of economic growth in China next year, according to analysts interviewed by the Securities Times. Proposed consumption boosting measures include extending tax exemptions for green energy vehicles, further use of consumption vouchers, increasing fiscal transfers from governments to households, optimising epidemic controls to support the food & catering sector, and increasing confidence in the real estate sector. Following Covid disruptions, improved policy coordination is needed in social security, consumer finance, rural revitalisation, and income distribution, analysts interviewed by the Securities Times said.
• China's unemployment level will remain under significant pressure in the short term, as sectors affected by the pandemic will take time to recover, and exporting employers face a downturn next year, according to Yu Jiadong, Vice Minister of the Ministry of Human Resources and Social Security. In addition, structural challenges such as quickening industrial transformation are leading to a shortage of skilled labour. China should implement monetary and fiscal policy conducive to expanding employment, and promote programmes such as college graduates entrepreneurship scheme. Yu’s comments were reported in an article from Caixin.