MNI China Press Digest May 29: Graduates, Birth Rate, Cars

Highlights from Chinese press reports on Monday:

• Guangdong province will prioritise graduate employment to boost social stability and people's livelihoods, according to Qiu Kenan, spokesperson for the Guangdong Provincial Department of Education. The Government this year faces a difficult task to support young people, with new graduates in Guangdong expected to reach 970,000 in 2023, up 35.6% y/y, Qiu said. Guangdong has launched more than 864 recruitment activities since January and also boosted technical training services to enhance unemployed graduate skills. (Source: 21st Century Herald)
• Authorities should increase social welfare to boost China’s low birth rates, according to Li Chaomin, professor at Shanghai University of Finance and Economics and a senior researcher at Taihe Think Tank. Li said China should guarantee women’s income during maternity leave and boost child support subsidies, tax reductions and social payments to address the decline in population. Women working in labour intensive industries were at most need. Policymakers should ensure China's modernity is based on fiscal investment that considers economic growth and social progress together, Li said. Authorities can achieve common prosperity by reducing income inequality, he added. (Source: Yicai)
• China’s automobile market has recovered slower than expected due to uneven subsidy implementation and weak aggregate demand, according to Chen Shihua, deputy secretary-general of the China Association of Automobile Manufacturers (CAAM). Speaking at a recent press conference, Chen said overall demand still lags pre-Covid levels, although the industry had shown positive improvements in 2023. The State Council recently signalled it would enhance macro-economic support which will further boost demand in the auto-market in H2, Chen said. (Source: Yicai)