China on Friday announced measures aimed at promoting innovation and job creation, state media said, as authorities seek to ensure that slowing economic growth does not harm employment.
According to measures released by the Chinese State Council, the government should broadly encourage entrepreneurship as well as start-up enterprises to serve as a new engine for economic growth, the Xinhua news agency reported.
The announcement comes as China’s economic growth last year registered its worst annual performance in nearly a quarter of a century, expanding 7.4 percent, while GDP decelerated further in the first quarter of this year from the previous three months.
Chinese authorities are tolerant of the slowdown, seeing it as a necessary element of their attempt to oversee a transformation of the economy in which consumer spending drives growth, a change that they and analysts envision as leading to more sustainable long-term expansion.
However, they are sensitive to the potential impact on job growth, which is seen as a key element of social stability in the nation with the world’s largest population.
A total of four measures call for governments at all levels of the nation to place priority on creating jobs, increase employment through the encouragement of entrepreneurship and start-ups, help university graduates to secure employment or establish businesses, and offer improved government and training services, according to Xinhua.
“In order to encourage entrepreneurship and start-ups, governments at all levels were called on to speed-up related reforms and refine policies to ensure fair treatment, favorable financial and tax conditions, and basic social safety benefits for start-ups,” Xinhua said.
The government said in March when releasing the first quarter GDP figure that China’s unemployment rate was “stable” at about 5.1 percent, and that 3.2 million new urban jobs were created in the period.
Such a pace would put the country on course to surpass its annual target of more than 10 million new urban jobs.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to
The US stock market has been on a tear, yet the country’s economy is in the dumps. So why do so many people believe — undoubtedly incorrectly — that the stock market has decoupled from reality? The economy many people experience, while bleak, is local, personal and, for the most part, either not publicly traded or plays only a small part in the stock market’s moves. To explain why these personal experiences have so little effect on equity markets, we must look more closely at the market role of the weakest industry sectors. The surprising conclusion: The most visible and economically vulnerable