Chinese Economics Thread

[Deleted member 23272]

Whats causing this talent shortage? Are CS programs in China lackluster outside of the top Universities? Or simply all of the strong CS graduates were going to internet companies, leaving only the weak ones going to manufacturing firms?

SCMP sometimes exaggerates the problem, China has a large educated population the main issue has always been creating the right conditions and incentives to put them to good use.

 

[BlackWindMnt]

someone mentioned this to me on twitter

https://twitter.com/i/web/status/1654262526249693185

https://twitter.com/i/web/status/1654265346076053506

This should confirm what we already know. with China's huge energy cost advantage, German & other European firms are just shifting production to China to take advantage of the lower cost. Terrible for Europe & great for China.

The obvious implication of last tweet is that European machines are now using Chinese parts, which means Europe has simply become more hooked on Chinese supply chain

I think it was Micheal Hudson from who i heard that western manufacturing these days is more akin to opening a LEGO set and just putting the components together. Instead of a robust ecosystem where the LEGO blocks are also made regionally.

 

[Deleted member 23272]

So why is the youth unemployment rate still so high? Will it recover fast or will it take another few years to go back to the usual 5%?

Already explained at length in numerous other threads that the zero COVID and the private sector crackdowns in 2022 caused the issue. It'll take a while to get things back on track, but at the very least the government recognized it screwed up last year so we should have good policy going down the line to foster entrepeneurship and job growth.

Another thing too is that much like the rest of the world China has an overabundance of educated youth and as @tankphobia said they don't want to work menial jobs like delivery driver. Thing is though, such jobs are still essential and in the West, some delivery driver jobs actually do pay well, in fact union delivery driving jobs pay better than many jobs requiring college degrees. Its part of the global stigmatization of vocational work that has to end if the world is create a better balance between people who deserve to go to college and those who are better of working menial, but nonetheless essential jobs.

 

[zbb]

Already explained at length in numerous other threads that the zero COVID and the private sector crackdowns in 2022 caused the issue. It'll take a while to get things back on track, but at the very least the government recognized it screwed up last year so we should have good policy going down the line to foster entrepeneurship and job growth.

I think another factor is the increase in automation, which was already proceeding at a rapid pace in China before COVID but accelerated even more during COVID.

In 2019, China was 15th in the world in robot density with 187 robots per 10,000 workers. By 2021, China had moved up to 5th in the world in robot density with 322 robots per 10,000 workers. The 72% increase in robot density in China over the first 2 years of COVID far outpaced the increase in the rest of the world.

 

[pipaster]

New frerry service opened on May 4 (not certain in which city?) connecting Guangzhou and Hong Kong.

 

[xypher]

I don't even understand the whole hysteria about supposedly high youth unemployment rate in China. Plenty of European countries have higher rates, most have comparable ratios. The US has lower youth unemployment because a lot of people there cannot afford higher education ever and hence enter the labour pool early or they get into college\university but have to work to afford the living costs. That's hardly a good thing, plus there's the whole cultural thing about forcing teenagers to seek jobs to earn pocket money.

Most young people of that age bracket in China are focused on education and would be at best looking for part-time jobs, and many of them are supported by their parents anyway. I bet at the end of that age bracket (23-24) the unemployment rate drops to be more or less in line with the rest of Chinese employment rates. I don't see the issue, seems like another dumbass thing that was nitpicked by the Western white propaganda machine like the "Evergrande China's Lehman moment" pieces they were churning each second but then their own banking system started collapsing.

 

[sunnymaxi]

I don't even understand the whole hysteria about supposedly high youth unemployment rate in China. Plenty of European countries have higher rates, most have comparable ratios. The US has lower youth unemployment because most people cannot afford higher education and go working earlier or they entered college\university but have to work to afford the living costs. Plus there's the whole cultural thing about forcing teenagers to seek jobs to earn pocket money. Most young people of that age bracket in China are focused on education and would be at best looking for part-time jobs, and many of them are supported by their parents anyway. I don't see the issue, seems like another dumbass thing that was nitpicked by the Western white propaganda machine like the "Evergrande China's Lehman moment" pieces they were churning each second but then their own banking system started collapsing.

and the snake 'SCMP'. they overstated each and every Chinese statistics and fabricate the original text. i have noticed many times. don't know why members give so much importance to SCMP. neither China has shortage of talent. only in semiconductor and Ai sectors coz its relatively new fields in mainland.

people actually forget China still have 35 percent population live in Rural areas where higher degree education is still low. and overall Youth unemployment rate is high due to rural regions. and its pretty normal.

Urban unemployment rate is at 5.2 percent. which accounts 65 percent of China's total population.

 

[henrik]

and the snake 'SCMP'. they overstated each and every Chinese statistics and fabricate the original text. i have noticed many times. don't know why members give so much importance to SCMP. neither China has shortage of talent. only in semiconductor and Ai sectors coz its relatively new fields in mainland.

people actually forget China still have 35 percent population live in Rural areas where higher degree education is still low. and overall Youth unemployment rate is high due to rural regions. and its pretty normal.

Urban unemployment rate is at 5.2 percent. which accounts 65 percent of China's total population.

More workers should be hired for the automobile industry. There is no reason why China (10 times Japan) cannot produce 78 million (10 times Japan) cars per year. In this case, Japan and Korea car industry will have to be wiped out. China's local market can consume at least 40 million cars per year, the rest for exports.

 

[FairAndUnbiased]

More workers should be hired for the automobile industry. There is no reason why China (10 times Japan) cannot produce 78 million (10 times Japan) cars per year. In this case, Japan and Korea car industry will have to be wiped out. China's local market can consume at least 40 million cars per year, the rest for exports.

It's not proportional but yes, the Japanese and Korean automotive industries are dinosaurs.

 

[fatzergling]

and the snake 'SCMP'. they overstated each and every Chinese statistics and fabricate the original text. i have noticed many times. don't know why members give so much importance to SCMP. neither China has shortage of talent. only in semiconductor and Ai sectors coz its relatively new fields in mainland.

people actually forget China still have 35 percent population live in Rural areas where higher degree education is still low. and overall Youth unemployment rate is high due to rural regions. and its pretty normal.

Urban unemployment rate is at 5.2 percent. which accounts 65 percent of China's total population.

China better be giving nice packages to it's overseas people working on a US PhD. US universities still lead AI research, but with an overwhelmingly Chinese and Indian foundation. Enticing Chinese to come back with lucrative packages and jobs can easily help China develop the AI talent it needs.