One of the more interesting effects of the dynamic state of U.S.-Chinese trade relations is its effects on labor and employment. While the Western press has sought to highlight these effects as part of their sustained criticism (and some defense) of the Trump Administration's policies (see, e.g., here, here, here, here, and here), Western media elements have been far less concerned about possible effects on the labor and employment situation in China.
CNN, however, recently reported on Chinese official's efforts to avoid large scale unemployment that has resulted from a cluster of factors tied to the effoprts, now several years old, to reshape the rulea and context of global trade (China is really worried about unemployment. Here's what it's doing to avoid mass layoffs).
Beijing has made clear that the world's second largest economy cannot spiral into a slump and risk mass layoffs as it tangles with rising debt, cooling domestic demand and an ongoing trade war with the United States. . . .In recent weeks, the government has bombarded the economy with a wave of stimulus measures, from tariff reductions that could help soothe the pain from rising prices, to rate cuts that could fuel more bank lending. . . Authorities are also amping up the language they're using to describe the situation. China's State Council last month called on local governments to "go to all lengths" to prevent massive job losses this year — what it characterized as the country's top policy priority. . . While China's official unemployment data has barely budged over the last several years, hovering between 4% and 5%, Beijing's messaging suggests that it is unusually worried about the slowing economy and the challenges that the year could bring. "Beijing is much more worried about social unrest than about ballooning local debt, which at one point seemed to be a priority, " said David Zweig, director of Transnational China Consulting Limited and a professor emeritus at the Hong Kong University of Science and Technology (Ibid.)
The reference to the State Council actions in the CNN reporting relates to a recently published set of guidelines issues by the Chinese State Council: 国务院关于进一步做好稳就业工作的意见 [Opinions of the State Council on Further Improving Employment Stability] No. 28 Release date: December 24, 2019
This post includes the text of the State Council Opinion in the original Chinese along with a crude English translation. Several points are worth considering as one reads through the text. The Opinion is organized into seven key elements, each subdivided into specific guidance; (1) a brief set of general requirements in one paragraph; (2) "support enterprises to stabilize their positions;" (3) "develop more jobs;" (4) "promote multi-channel employment and entrepreneurship for workers;" (5) "promote large-scale vocational skills training;" (6) "practical employment and entrepreneurship services;" and (7) "do a good job in basic living security." Beyond the expected directions to subsidize public sector enterprises, much of the guidance mirrors what one would expect to see as policy responses in liberal democratic developed states. But the form of the approaches to ameliorating job losses might mask some underlying differences --especially with respect to the role of the state rather than of markets in creating the conditions, including the macro and micro financial conditions to expand and redirect labor productivity. Recall that the State Council Guidance is directed to "People's
governments of provinces, autonomous regions, and municipalities
directly under the Central Government, ministries and commissions of the
State Council, and agencies directly under the State Council." Here one begins t see more clearly the way that markets play an important but different role within Marxist Leninist systems than they might in the West. Left without discusison, as is usual in such documents, are issues of coordination, and capacity (with respect to which ¶ 10 proves interesting). I leave the more detailed study to those interested but welcome more discussion.
















