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5、Mainland entrepreneurship hit hard by US-China trade dispute, post-commencement job prospect now gloomier than imagination

  • Date:2024-01-16

Due to the US-China trade disputes in the recent years, mainland China’s economic downturn continues. A survey conducted in 2020 by the economists at Peking University showed that the unemployment and semi-unemployment rate in mainland China were 15% and 5% respectively, rendering the overall unemployed population roughly over 100 billion and affecting the business prospects of start-ups. According to official statistics from mainland China, the number of university graduates in 2023 reached a record high of 11.58 million; however, among those aged 16 to 24, the unemployment rate in June was also at an all-time high of 21.3%. Mainland China's National Bureau of Statistics announced in August that it would stop releasing youth unemployment rates. Recent university graduates searching for jobs would either be forced to lower their salary expectations or face joblessness in the increasingly challenging environment for employment (or entrepreneurship).

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 8 consecutive years, fallen to a 13-year low in 2021. 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.