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Cover Image Attribute: Image by Media Breeze from Pixabay
HomeOpinionChina


CHINA'S STAGNANT INFLATION AND YOUTH UNEMPLOYMENT WOES AMPLIFY ECONOMIC CONCERNS


IndraStra Global Tuesday, July 11, 2023 Edit this post

By IndraStra Global Editotrial Team

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Cover Image Attribute: Image by Media Breeze from Pixabay


China's economic landscape faces two pressing challenges as consumer inflation
stagnates and youth unemployment reaches alarming levels. These issues intensify
worries about deflation risks and prompt discussions regarding potential
economic stimulus measures. While China's consumer price index (CPI) showed no
change in June compared to the previous year, factory-gate prices continued to
decline. These contrasting trends stand in stark contrast to the United States
and Europe, where persistently high inflation suggests imminent interest rate
hikes.
According to data released by the National Bureau of Statistics, June's consumer
price index remained unchanged from the previous year, marking the lowest rate
since February 2021. This slump was primarily caused by plummeting pork costs,
affecting the index's overall performance.
The nation's faltering recovery has dealt a severe blow to its younger
population, with over 20% of 16 to 24-year-olds reported as unemployed in May.
This unemployment rate surpasses that of European countries such as France and
Italy and represents the highest proportion since records began in 2018.



Although job opportunities continue to arise, many unskilled positions fail to
attract university graduates. Crackdowns on sectors like technology, finance,
and gaming have significantly curtailed the once sought-after opportunities
among young people.


Some critics attribute this skills mismatch to the government's attempt to tilt
the economy towards high-tech manufacturing. However, as the sector is not yet
prepared to absorb the influx of engineering graduates, suitable graduate-level
jobs are scarce. Others argue that the root causes run deeper, citing inadequate
domestic consumption as a limiting factor for job creation. "When you build your
manufacturing competitiveness based on low wages, once low wages become a
problem because of weak domestic demand, you're sort of stuck," explained one
analyst.



In response to the challenging job market, Beijing recently advised unemployed
graduates to embrace manual labor. It published success stories of those who
allegedly achieved fortunes through low-skilled jobs like street food vending or
fruit cultivation, diverting from their chosen career paths. However, this
message faced substantial criticism on social media platforms.
China's slower-than-anticipated economic recovery has spurred the government to
seek increased foreign investment. Nevertheless, recent trade sanctions have
impacted market sentiment between China and the United States. Encouragingly,
the visit of US Treasury Secretary Janet Yellen over the weekend alleviated some
political tensions between the two nations as she emphasized the potential for
enhanced trade and economic cooperation.
As China grapples with stagnant inflation, unemployment challenges among its
youth, and the quest for economic revitalization, policymakers face the daunting
task of formulating effective strategies to revive the nation's economic
momentum and foster a prosperous future.

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FILED UNDER:

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Biology,1,Marine Engineering,3,Maritime,51,Market
Research,2,Marketing,38,Mars,2,Martech,10,Mass Media,30,Mass Shooting,1,Material
Science,2,Mauritania,1,Mauritius,3,MDGs,1,Mechatronics,2,Media
War,1,MediaWiki,1,Medical,1,Medicare,1,Mediterranean,12,MENA,6,Mental
Health,4,Mercosur,2,Mergers and
Acquisitions,19,Meta,3,Metadata,2,Metals,4,Mexico,14,Micro-finance,4,Microsoft,12,Migration,19,Mike
Pence,1,Military,113,Military Exercise,12,Military Service,2,Military-Industrial
Complex,3,Mining,16,Missile Launching Facilities,6,Missile Systems,58,Mobile
Apps,3,Mobile Communications,12,Mobility,4,Modi,8,Moldova,1,Monaco,1,Monetary
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Convention,1,Moon,4,Morocco,2,Morsi,1,Mortgage,3,Moscow,2,Motivation,1,Mozambique,1,Mubarak,1,Multilateralism,2,Mumbai,1,Muslim
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Warfare,2,NDC,1,Nearshoring,1,Negotiations,2,Nepal,13,Netflix,1,Neurosciences,7,New
Caledonia,1,New Delhi,4,New Normal,1,New York,5,New Zealand,7,News,1334,News
Publishers,1,Newspaper,1,NFT,1,NGO,1,Nicaragua,1,Niger,3,Nigeria,10,Nikki
Haley,1,Nirbhaya,1,Noble Prize,1,Non Aligned Movement,1,Non Government
Organization,4,Nonproliferation,2,North Africa,23,North America,56,North
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Congress,1,Passport,1,Patents,2,PATRIOT Act,1,Payment Orchestration,1,Peace
Deal,6,Peacekeeping Mission,1,Pension,1,People Management,1,Persian
Gulf,19,Peru,6,Petrochemicals,1,Petroleum,19,Pharmaceuticals,15,Philippine,1,Philippines,19,Philosophy,2,Photos,3,Physics,1,Pipelines,6,PLA,2,PLAN,4,Plastic
Industry,2,Poland,8,Polar,1,Policing,1,Policy,8,Policy Brief,6,Political
Studies,1,Politics,56,Polynesia,3,Pope,1,Population,7,Portugal,1,Poverty,8,Power
Transmission,6,Preprint,1,President APJ Abdul Kalam,2,Presidential
Election,35,Press Release,158,Prison System,1,Privacy,18,Private Debt
Fund,1,Private Equity,3,Private Military
Contractors,2,Privatization,1,Programming,1,Project
Management,4,Propaganda,5,Protests,14,Psychology,3,Public Policy,55,Public
Relations,1,Public Safety,7,Publications,1,Publishing,8,Purchasing Managers'
Index,1,Putin,7,Q&A,1,Qatar,114,QC/QA,1,Qods Force,1,Quad,1,Quantum
Computing,4,Quantum Physics,4,Quarter Results,2,Racial Justice,2,RADAR,2,Rahul
Guhathakurta,4,Railway,9,Raj,1,Ranking,4,Rape,1,RBI,1,RCEP,2,Real
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&
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Canadian Air Force,1,Rupee,1,Russia,328,Russian
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Abe,1,Shipping,11,Shutdown,2,Siachen,1,Sierra Leone,1,Signal
Intelligence,1,Sikkim,5,Silicon Valley,1,Silk
Route,6,Simulations,2,Sinai,1,Singapore,17,Situational Awareness,20,Small
Modular Nuclear Reactors,1,Smart Cities,7,Smartphones,1,Social Media,1,Social
Media Intelligence,40,Social Policy,40,Social Science,1,Social
Security,1,Socialism,1,Sociology,1,Soft Power,1,Software,8,Software
Engineering,1,Solar Energy,17,Somalia,5,South Africa,20,South America,55,South
Asia,498,South China Sea,37,South East Asia,84,South Korea,68,South
Sudan,4,Sovereign Wealth Funds,1,Soviet,2,Soviet Union,9,Space,47,Space
Station,3,Spaceflight,1,Spain,9,Special Education,1,Special
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Lanka,26,Stablecoin,1,Stamps,1,Startups,43,State,1,State of the
Union,1,Statistics,1,STEM,1,Stephen Harper,1,Stock Markets,29,Storm,2,Strategy
Games,5,Strike,1,Sub-Sahara,4,Submarine,16,Sudan,6,Sunni,6,Super
computing,1,Supply Chain Management,48,Surveillance,13,Survey,5,Sustainable
Development,18,Swami
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Disputes,1,Terrorism,78,Testing,2,Texas,3,Thailand,12,The Middle East,665,Think
Tank,317,Tibet,3,TikTok,2,Tim Walz,1,Tobacco,1,Tonga,1,Total Quality
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War,10,Trademarks,1,Trainging and
Development,1,Transcaucasus,22,Transcript,4,Transpacific,2,Transportation,47,Travel
and Tourism,16,Tsar,1,Tunisia,7,Turkey,75,Turkmenistan,10,U.S. Air Force,3,U.S.
Dollar,2,UAE,140,UAV,23,UCAV,1,Udwains,1,Uganda,1,Ukraine,117,Ukraine
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Space
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Right,14,Workers Union,1,Workshop,1,World Bank,40,World Economy,33,World
Peace,10,World War I,1,World War II,3,WTO,6,Wyoming,1,Xi
Jinping,9,Xinjiang,2,Yemen,29,Yevgeny Prigozhin,1,Zbigniew
Brzezinski,1,Zimbabwe,2,
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IndraStra Global: China's Stagnant Inflation and Youth Unemployment Woes Amplify
Economic Concerns
China's Stagnant Inflation and Youth Unemployment Woes Amplify Economic Concerns
By IndraStra Global Editotrial Team
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgVFUW2v3VvtJYxZCqPSBk6A7BLbT2dqBTBGVQuR2vTcygZ8ChRLz-U9RbhLlYajxywMnVrI1kHIyLtxSgBHKWvYagZt6vQ3qzxGNIfRV5nl55YBReVrjdotdNgQkyHAnspUxWE9tiwS-t_00oz526Pzn7_Kj1hNGKHCx2z1dt9kWURq36HRoF-n9E0EtA/w640-h426/china-g30d91d2b0_1920.jpg
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgVFUW2v3VvtJYxZCqPSBk6A7BLbT2dqBTBGVQuR2vTcygZ8ChRLz-U9RbhLlYajxywMnVrI1kHIyLtxSgBHKWvYagZt6vQ3qzxGNIfRV5nl55YBReVrjdotdNgQkyHAnspUxWE9tiwS-t_00oz526Pzn7_Kj1hNGKHCx2z1dt9kWURq36HRoF-n9E0EtA/s72-w640-c-h426/china-g30d91d2b0_1920.jpg
IndraStra Global
https://www.indrastra.com/2023/07/chinas-stagnant-inflation-and-youth.html
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https://www.indrastra.com/2023/07/chinas-stagnant-inflation-and-youth.html
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