China’s premier seeks succor for struggling companies as youth unemployment soars

This photo taken on June 2, 2024 shows people attending a job fair in Huai'an, in eastern China's Jiangsu province. (AFP)
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Updated 17 August 2024
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China’s premier seeks succor for struggling companies as youth unemployment soars

  • Youth unemployment in the world’s second-largest economy ticked up to 17.1 percent in July, the highest level this year
  • Nearly 12 million students graduated from Chinese universities this June, heightening competition in an already tough job market

BEIJING: China's Premier Li Qiang on Friday called for struggling companies to be “heard” and “their difficulties truly addressed,” according to state news agency Xinhua.

Li, who is responsible for economic policy, issued the directive as the world’s second-largest economy faces mounting headwinds. China is battling soaring joblessness among young people, a heavily indebted property sector and intensifying trade issues with the West.

Youth unemployment in China ticked up to 17.1 percent in July, official figures showed, the highest level this year.

The unemployment rate among 16- to 24-year-olds released Friday by the National Bureau of Statistics (NBS) was up markedly from June’s 13.2 percent.
The closely watched metric peaked at 21.3 percent in June of 2023, before authorities suspended publication of the figures and later changed their methodology to exclude students.
Nearly 12 million students graduated from Chinese universities this June, heightening competition in an already tough job market and likely explaining July’s sharp increase in joblessness.
In May, President Xi Jinping said countering youth unemployment must be regarded as a “top priority.”




Job seekers attend an employment fair in Beijing on March 20, 2024. (AFP)

Among 25- to 29-year-olds, the unemployment rate stood at 6.5 percent for July, up from the previous month’s 6.4 percent.
For the workforce as a whole, the unemployment rate was 5.2 percent.
However, the NBS figures paint an incomplete picture of China’s overall employment situation, as they take only urban areas into account.
The new unemployment figures come on the heels of other disappointing economic data from Beijing, including figures showing dampened industrial production, despite recent government measures aimed at boosting growth.
Industrial production growth weakened in July, with the month’s 5.1 percent expansion down from June’s 5.3 percent and falling short of analyst predictions.
China’s major cities also recorded another decline in real estate prices last month, a sign of sluggish demand.
Demand for bank loans also contracted for the first time in nearly 20 years, according to official figures published earlier this week.
International challenges are also mounting, with the European Union and the United States increasingly imposing trade barriers to protect their markets from low-cost Chinese products and perceived unfair competition.
 


EU leaders to reassess US ties despite Trump U-turn on Greenland

Updated 22 January 2026
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EU leaders to reassess US ties despite Trump U-turn on Greenland

  • Diplomats stressed that, although Thursday’s emergency EU talks in Brussels would now lose some of their urgency, the longer-term issue of how to handle the relationship with the US remained

BRUSSELS: EU leaders will rethink their ties with the US at an emergency summit on Thursday after Donald Trump’s threat of tariffs and even military action to ​acquire Greenland badly shook confidence in the transatlantic relationship, diplomats said.
Trump abruptly stepped back on Wednesday from his threat of tariffs on eight European nations, ruled out using force to take Greenland, a semi-autonomous territory of NATO ally Denmark, and suggested a deal was in sight to end the dispute.
German Chancellor Friedrich Merz, welcoming Trump’s U-turn on Greenland, urged Europeans not to be too quick to write off the transatlantic partnership.
But EU governments remain wary of another change of mind by a mercurial president who is increasingly seen as a bully that Europe will have to stand up to, and they are focused on coming up with a longer-term plan on how to deal with the ‌United States under this ‌administration and possibly its successors too.
“Trump crossed the Rubicon. He might do ‌it ⁠again. ​There is no ‌going back to what it was. And leaders will discuss it,” one EU diplomat said, adding that the bloc needed to move away from its heavy reliance on the US in many areas.
“We need to try to keep him (Trump) close while working on becoming more independent from the US It is a process, probably a long one,” the diplomat said.
EU RELIANCE ON US
After decades of relying on the United States for defense within the NATO alliance, the EU lacks the needed intelligence, transport, missile defense and production capabilities to defend itself against a possible Russian attack. This gives the US substantial leverage.
The US ⁠is also Europe’s biggest trading partner, making the EU vulnerable to Trump’s policies of imposing tariffs to reduce Washington’s trade deficit in goods, and, as in ‌the case of Greenland, to achieve other goals.
“We need to discuss where ‍the red lines are, how we deal with this bully ‍across the Atlantic, where our strengths are,” a second EU diplomat said.
“Trump says no tariffs today, but does ‍that mean also no tariffs tomorrow, or will he again quickly change his mind? We need to discuss what to do then,” the second diplomat said.
The EU had been considering a package of retaliatory tariffs on 93 billion euros ($108.74 billion) on US imports or anti-coercive measures if Trump had gone ahead with his own tariffs, while knowing such a step would harm Europe’s economy as well ​as the United States.
WHAT’S THE GREENLAND DEAL?
Several diplomats noted there were still few details of the new plan for Greenland, agreed between Trump and NATO Secretary General Mark Rutte late on ⁠Wednesday on the sidelines of the World Economic Forum in Davos, Switzerland.
“Nothing much changed. We still need to see details of the Greenland deal. We are a bit fed up with all the bullying. And we need to act on a few things: more resiliency, unity, get our things together on internal market, competitiveness. And no more accepting tariff bullying,” a third diplomat said.
Rutte told Reuters in an interview in Davos on Thursday that under the framework deal he reached with Trump the Western allies would have to step up their presence in the Arctic.
He also said talks would continue between Denmark, Greenland and the US on specific issues.
Diplomats stressed that, although Thursday’s emergency EU talks in Brussels would now lose some of their urgency, the longer-term issue of how to handle the relationship with the US remained.
“The approach of a united front in solidarity with Denmark and Greenland while focusing on de-escalation and finding an off-ramp has worked,” a fourth EU diplomat said.
“At the ‌same time it would be good to reflect on the state of the relationship and how we want to shape this going forward, given the experiences of the past week (and year),” he said.