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五、Mainland Chinese entrepreneurship hit hard by the US-China trade dispute; job seeking for new graduates is not as easy as imaged

  • Date:2021-10-08

Due to the US-China trade dispute in the recent years, mainland China’s economic growth remains negative. Data published by mainland China's National Bureau of Statistics showed a steady rise in unemployment rate among youth aged 16-24, increasing from 12.7% to 16.2% between January and July 2021. According to the estimates of the Ministry of Education of mainland China, their universities expect to churn out a record high number of 9.09 million graduates in 2021, yet this number of graduates has not been met with a significant increase in job openings. As a result, the employment and entrepreneurship prospects are increasingly gloomy going forward.

Example 1: To maintain its political grip, mainland China has been promoting the policy of "the state advances, the private sector retreats” (i.e. large national enterprises engage in hostile takeovers of competitive private enterprises). Nonetheless, the purchase spree and cultivation of state-owned enterprises that have already enjoyed considerable advantages are likely to further deteriorate the economy.

Example 2: According to data from the Directorate-General of Budget, Accounting and Statistics, the number of Taiwanese people seeking employment in mainland China has declined for 6 consecutive years, reaching a 12-year low in 2019. In recent years, the operational costs of mainland Chinese businesses such as wages and environmental costs saw a steady rise. Hence, investment in mainland China from Taiwanese businesses declined, and many foreign investment also continues to withdraw from mainland China.