China
China’s youth face dismal job prospects
Xu Ke, 21, comes from a long line of university lecturers.
Yet his peers and people a few years older than him are all struggling with a major crisis in their lives: growing competition for a dwindling number of jobs as youth unemployment tops 20%, driven by a huge downturn in manufacturing and foreign investment.
“There aren’t many jobs, and the competition for the jobs there are is too strong,” said Xu, who is currently studying at a university in Minnesota. “Everyone is willing to do any job.”
“With everyone willing to do anything, wages are [kept] low, and benefits are poor,” Xu told Radio Free Asia in a recent interview.
Before the pandemic, most of his peers would once have expected to study for a teaching or liberal arts degree, before going on to land jobs as elementary and secondary school teachers.
But those days are long gone, Xu said, adding that the 20.4% unemployment rate among people aged 16-24 reported by the National Bureau of Statistics for April was likely only the tip of the iceberg.
“I would guess that the proportion of young people who can’t find a job at all is likely to be between 40 and 50%,” he said.
“After all, not everyone [with parents who work in the government] system can even get into senior high school, and not everyone in senior high school can get into college,” he said. He cited a government quota introduced in 2021 requiring 50% of junior high school students to take up places in technical and vocational schools, rather than senior high school.
Before the policy was introduced, around 60% of junior high-schoolers would have gone on to senior high, where they would then be eligible to take the grueling “Gaokao” university entrance exam.
Shut out
Some of Xu’s friends have now effectively been barred from a university education, and from the white collar jobs that education prepares them for.
Shut out of the system that raised them, they are forced to look for blue-collar jobs instead.
“Wages [in blue-collar jobs] are very low, and there is a lot of strenuous physical labor,” he said. “Some people can’t do it, or they can’t find [even blue-collar] jobs, so they basically spend their time waiting to get old.”
For 30-year-old Shan Wentao, it’s a familiar scenario.
Born into a working-class family in the eastern province of Anhui, Shan says even his peers can’t find work in the current economic environment, with dwindling opportunities in manufacturing and sharp falls in foreign investment.
“I tried to get a shift on a construction site, but there are more people [available to work] in the industry now, and the wages are getting lower and lower, while the work is pretty backbreaking,” he said.
One of Shan’s friends did land some construction work, but only lasted a few months due to health problems and non-payment of wages.
Yet for young working class people, “lying flat” – essentially doing nothing while living at home – is less of an option than it is for their counterparts with higher-level qualifications, as many are already married, and can’t live back home with mom and dad.
“There’s nothing to be done about it,” he said. “I get the impression they don’t want to do these jobs, but what else can they do?”
‘Revitalizing the rural economy’
A woman who gave only the surname Chen said she has a 17-year-old relative who is despondent about life after she graduates from vocational school.
“She says the teaching in the technical school is so bad that she isn’t learning anything, and that she’ll earn very little after she graduates,” Chen said. “She says it’s easier just to lie flat.”
“She doesn’t want to do manual work, because it’s too tiring, but her family doesn’t have the resources to send her to study overseas,” she said. “She is desperate, and confused about the future.”
National Bureau of Statistics spokesperson Fu Linghui told a news conference on May 16 that “the relevant departments are proactively introducing policies to provide targeted assistance” to help young people into work.
But media reports pointed to a rising number of college graduates in recent years, coupled with residual unemployment from previous years.
President Xi Jinping has called on young people to be less picky about the jobs they’ll accept, as well as lauding those who return to rural areas to “revitalize the rural economy.”
But his exhortations have fallen on deaf ears as the middle class cash out of the Chinese economy and join the “run” movement, seeking a new life overseas, often via political asylum in the United States.
“During the Mao era, the Chinese government promoted the relocation of educated urban youths to the countryside, through a combination of heavy political propaganda and various kinds of political pressure,” U.S.-based economist He Qinglian wrote in a recent commentary for RFA Mandarin.
But while more than 12 million have done so in recent years, the numbers don’t amount to much when taken alongside the hundreds of millions of rural residents who continue to move into China’s cities to find work.
“Of course the Chinese government knows very well that it won’t be able to get rural youths who have experienced the simplicity of urban life to pick up their hoes and bend themselves double over the land again,” He wrote, citing the rise of “Taobao villages” as people run online shops from rural locations.
She cited government balance-of-payments data as showing a 43% decline in foreign direct investment in China in 2022, compared with the previous year.
“Foreign-invested companies are gradually withdrawing from the Chinese market, which is a big blow to employment rates,” she said, adding that youth unemployment rates would be higher still if the government didn’t remove people returning to rural hometowns from the figures.
Translated by Luisetta Mudie. Edited by Malcolm Foster.
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Business
BRICS: China Classifies Crypto as Property and Prohibits Business Ownership
China’s Shanghai court ruled cryptocurrencies are property, boosting optimism in the crypto industry while maintaining a ban on business transactions. This may signal a shift in future regulations.
China’s Ruling on Cryptocurrency
In a pivotal decision for the nation and its BRICS alliance, China has officially classified cryptocurrency as property while maintaining prohibitions against business transactions involving digital assets. A notable ruling from the Shanghai Songjiant People’s Court affirmed cryptocurrencies as property, sparking optimism within the crypto industry regarding future regulations.
Implications for the Crypto Industry
As cryptocurrencies gain significance globally, the Chinese ruling is viewed as a potential-positive shift amidst ongoing restrictions. While individuals can hold virtual currency, businesses remain barred from engaging in investment transactions or issuing tokens independently. This decision has generated anticipation for more accommodating regulations in the future.
Future Prospects for Cryptocurrency in China
Experts like Max Keiser believe this ruling indicates China’s growing acknowledgment of Bitcoin’s influence. As BRICS nations explore increased cryptocurrency utilization in trade, this legal shift could enhance market demand and lead to greater acceptance of cryptocurrencies as a legitimate asset class, setting the stage for potential developments in 2025.
Source : BRICS: China Rules Crypto as Property, Bars Business Holdings
China
Digital Taxation in China: Effects on Corporate Tax Risk Management and Compliance Strategies
Tax digitalization in China enhances efficiency and accuracy in tax administration through AI and technology. Significant advancements include online services, e-invoicing, and data integration, improving risk management. The government targets further reforms by 2025 to establish a robust intelligent taxation system.
Tax digitalization, also known as “digitalized tax administration” or “tax administration by data,” is gaining momentum in China. Enabled by digital technologies and artificial intelligence, Chinese tax authorities have significantly improved the efficiency and accuracy of tax administration. As a result, tax risks are now easier to identify, and tax audits have become more focused and targeted.
The Chinese tax bureau has made significant efforts to advance tax administration through digital upgrades and intelligent transformation. By utilizing modern information technology, the tax authorities have established platforms such as the electronic tax bureau, which enables online processing of tax registration, filing, and payments. Additionally, the promotion of electronic invoicing and the Golden Tax IV system has improved the efficiency and accuracy of tax administration.
This digital landscape allows tax authorities to integrate data from various sources, including invoices, banking information, business records, and customs data. Such integration facilitates more accurate identification of potential tax risks.
This article explores the impact of tax digitalization on businesses in China, emphasizing the evolving dynamics of tax risk management, particularly regarding data supervision.
At the opening ceremony of the 5th Belt and Road Initiative Tax Administration Cooperation Forum on September 24, 2024, Hu Jinglin, Commissioner of the State Taxation Administration (STA) of China, delivered a speech outlining the efforts of Chinese tax authorities to enhance tax administration and efficiency. He emphasized the importance of advancing tax governance through data, highlighting the STA’s commitment to leveraging data and algorithms for intelligent tax management.
Currently, a pilot program for fully digitalized electronic invoices (e-fapiao) has been expanded nationwide, alongside the launch of a unified electronic tax bureau. Additionally, a smart office platform for tax personnel is under development. These systems aim to provide intelligent services for taxpayers and enable tax officers to deliver differentiated and precise services based on dynamic credit risk assessments.
Furthermore, according to a document released by the General Office of the CPC Central Committee and General Office of the State Council in 2021, titled “Opinions on Further Deepening the Reform of Tax Collection and Administration,” China aims to achieve significant progress by 2025 in reforming its tax administration system. In particular, it aims to establish a robust and intelligent taxation framework and develop a first-class intelligent administrative application system, thereby improving tax law enforcement, service, and regulatory capabilities.
| This article was first published by China Briefing , which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in China, Hong Kong, Vietnam, Singapore, and India . Readers may write to info@dezshira.com for more support. |
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China
Farms to fame: How China’s rural influencers are redefining country life
In Yunnan, influencer Dianxi Xiaoge redefines rural China’s image, showcasing pastoral life, bridging cultural gaps between urbanites and rural communities, and sparking interest through nostalgic content and government support.
In the quiet backwaters of Yunnan, Dong Meihua – though her followers know her by the public alias Dianxi Xiaoge – has done something remarkable: She’s taken the pastoral simplicity of rural China and made it irresistible to millions. In her hands, a village kitchen becomes a stage, and the rhythms of farm life become a story as compelling as any novel. She is one of many rural influencers returning to their roots.
In a digital revolution turning established narratives on their head, China’s countryside is emerging as an unlikely epicenter of viral content. Xiaoge is one of thousands of influencers redefining through social media how the countryside is perceived.
Upending preconceptions of rural China as a hinterland of poverty and stagnation, this new breed of social media mavens is serving up a feast of bucolic bliss to millions of urbanites. It is a narrative shift encouraged by authorities; the Chinese government has given its blessing to influencers promoting picturesque rural images. Doing so helps downplay urban-rural chasms and stoke national pride. It also fits nicely with Beijing’s rural revitalization strategy.
Hardship to revival
To fully appreciate any phenomenon, it’s necessary to first consider the historical context. For decades, China’s countryside was synonymous with hardship and backwardness. The Great Leap Forward of the late 1950s and early 1960s – Communist China’s revered founder Mao Zedong’s disastrous attempt to industrialize a largely agrarian country – devastated rural communities and led to widespread famine that saw tens of millions die.
The subsequent Cultural Revolution, in which Mao strengthened his grip on power through a broad purge of the nation’s intelligentsia, further disrupted customary rural life as educated youth were sent to the countryside for “reeducation.” These traumatic events inflicted deep scars on the rural psyche and economy.
Meanwhile, the “hukou” system, which since the late 1950s has tied social benefits to a person’s birthplace and divided citizens into “agricultural ” and “nonagricultural” residency status, has created a stark divide between urban and rural citizens.
The reform era of Mao’s successor, Deng Xiaoping, beginning in 1978, brought new challenges. As China’s cities boomed, the countryside lagged behind.
Millions of rural Chinese have migrated to cities for better opportunities, abandoning aging populations and hollowed-out communities. In 1980, 19% of China’s population lived in urban areas. By 2023, that figure had risen to 66%.
Government policies have since developed extensively toward rural areas. The abolition of agricultural taxes in 2006 heralded a major milestone, demonstrating a renewed commitment to rural prosperity. Most recently, President Xi Jinping’s “rural revitalization” has put countryside development at the forefront of national policy. The launch of the Internet Plus Agriculture initiative and investment in rural e-commerce platforms such as Taobao Villages allow isolated farming communities to connect to urban markets.
Notwithstanding these efforts, China’s urban-rural income gap remains substantial, with the average annual per capita disposable income of rural households standing at 21,691 yuan (about US$3,100), approximately 40% of the amount for urban households.
Enter the ‘new farmer’
Digital-savvy farmers and countryside dwellers have used nostalgia and authenticity to win over Chinese social media. Stars such as Li Ziqi and Dianxi Xiaoge have racked up huge numbers of followers as they paint rural China as both an idyllic escape and a thriving cultural hub.
The Chinese term for this social media phenomenon is “new farmer.” This encapsulates the rise of rural celebrities who use platforms such as Douyin and Weibo to document and commercialize their way of life. Take Sister Yu: With over 23 million followers, she showcases the rustic charm of northeast China as she pickles vegetables and cooks hearty meals. Or Peng Chuanming: a farmer in Fujian whose videos on crafting traditional teas and restoring his home have captivated millions.
Since 2016, these platforms have turned rural life into digital gold. What began as simple documentation has evolved into a phenomenon commanding enormous audiences, fueled not just by nostalgia but also economic necessity. China’s post-COVID-19 economic downturn, marked by soaring youth unemployment and diminishing urban opportunities, has driven some to seek livelihoods in the countryside.
In China’s megacities, where the air is thick with pollution and opportunity, there’s clearly a hunger for something real – something that doesn’t come shrink-wrapped or with a QR code. And rural influencers serve slices of a life many thought lost to China’s breakneck development.
Compared with their urban counterparts, rural influencers carve out a unique niche in China’s vast social media landscape. Although fashion bloggers, gaming streamers and lifestyle gurus dominate platforms such as Weibo and Douyin, the Chinese TikTok, rural content creators tap into a different cultural romanticism and a yearning for connection to nature. In addition, their content capitalizes on the rising popularity of short video platforms such as Kuaishou and Pinduoduo, augmenting their reach across a wide demographic, from nostalgic retirees to eco-conscious millennials.
But this is not simply digital escapism for the masses. Tourism is booming in once-forgotten villages. Traditional crafts are finding new markets. In 2020 alone, Taobao Villages reported a staggering 1.2 trillion yuan (around $169.36 billion) in sales.
The Chinese government, never one to miss a PR opportunity, has spotted potential. Rural revitalization is now the buzzword among government officials. It’s a win-win: Villagers net economic opportunities, and the state polishes its reputation as a champion of traditional values. Government officials have leveraged platforms such as X to showcase China’s rural revitalization efforts to international audiences.
Authenticity or illusion?
As with all algorithms, there’s a catch to the new farmer movement. The more popular rural influencers become, the more pressure they face to perform “authenticity.” Or put another way: The more real it looks, the less real it might actually be.
It raises another question: Who truly benefits? Are we witnessing rural empowerment or a commodification of rural life for urban consumption? With corporate sponsors and government initiatives piling in, the line between genuine representation and curated fantasy blurs.
Local governments, recognizing the economic potential, have begun offering subsidies to rural content creators, causing skepticism about whether this content is truly grassroots or part of a bigger, state-led campaign to sanitize the countryside’s image.
Yet, for all the conceivable pitfalls, the new farmer trend is an opportunity to challenge the urban-centric narrative that has dominated China’s development story for decades and rethink whether progress always means high-rises and highways, or if there’s value in preserving ways of life that have sustained communities for centuries.
More importantly, it’s narrowing the cultural disconnect that has long separated China’s rural and urban populations. In a country where your hukou can determine your destiny, these viral videos foster understanding in ways that no government program ever could.
This article is republished from The Conversation under a Creative Commons license. Read the original article.
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