China’s Economic Crisis: The beginning of 2024 was disappointing for Xi Jinping, unemployment is increasing

President Xi Jinping acknowledged that Chinese businesses are facing difficult times. The Chinese President made this statement during his speech on New Year’s Eve. China, the world’s second largest economy, is facing a structural recession due to weak demand, rising unemployment and falling business confidence. Palki Sharma tells you more about China’s economic problems.

Economic growth fails to materialize in 2023

We will strengthen the pace of economic reform and work to achieve stable and long-term economic growth, Xi said in a televised message to his country’s 1.4 billion people. China’s much-anticipated economic boom after the pandemic failed to materialize in 2023. Beijing is expected to again target a growth target of around 5% in 2024, to avoid a self-satisfying negative cycle arising from low numbers. This will probably be difficult due to the higher comparison base.

Difficult for youth to find jobs

Youth unemployment is also increasing in China. It has become difficult for the youth of the country to find jobs. Youth unemployment in China has increased so much that the government has now stopped releasing its figures. The situation in the country is such that many youth are even burning their degrees in anger due to not getting jobs. Increasing confidence in China will be important this year. Concerns over Beijing’s opaque policymaking spooked investors in 2023, while higher interest rates abroad fueled capital outflows. A recent crackdown on the gaming industry led to an $80 billion plunge, raising new concerns over policy changes, as foreign investors recorded their smallest annual purchases of Chinese stocks ever.