Private sector deserves full support for vital role in generating new jobs in China

There is a growing belief that maintaining and creating employment is the next battleground in the China-US competition. That is meant to call attention to job creation efforts as the rivalry between the world’s top two economies, which has unfolded in the trade and economic spheres, will eventually extend into the job market.

There are already signs that China-US trade tensions are taking a toll on the US job market. In late November, General Motors announced plans to lay off up to 14,000 workers and close five facilities in North America. Although the company said the move is intended to prepare it for the future world of autonomous and electric vehicles, the job cuts still stoked woes that the trade war has dealt a blow to US businesses with increased tariffs on steelrelated products, including auto parts.

A potential failure to produce jobs as promised could turn out to be the Achilles’ heel of the US government, as Donald Trump proclaimed he would be the greatest job-producing president in US history.

China’s employment situation is facing challenges as well. While official figures show employment has remained resilient – China created 12 million new urban jobs in the first 10 months of the year, an increase of 90,000 from a year earlier – there are increasing warnings from economists and market watchers over hiring woes in the world’s secondlargest economy. If the trade war proves to be a persistent headache, the country’s job market might be hit hard.

In light of this, reforms designed to bolster activity in the job market ought to be stepped up. A recent announcement by the State Council, China’s cabinet, to give companies with no or few layoffs a 50 percent refund on their unemployment insurance premiums paid in the past year, is an excellent example of an effort to stabilize employment.

Beyond that, employment supportive policies are supposed to be devised specifically for the private sector, the main job creator in China. The number of privately run businesses has exceeded 27 million, contributing more than 90 percent of new urban jobs.

And it’s not only the numbers that matter. The annual list of Chinese college students’ ranking of the best employers was unveiled on Thursday by US-listed online classifieds marketplace 58.com, often described as China’s Craigslist. The findings of a survey covering students from 291 universities and colleges in 60 cities showed that private businesses take the lion’s share, accounting for 50.22 percent of the companies selected to make the list, while State-owned enterprises make up 40.03 percent.

So long as the private sector continues its vital role in propping up job growth, China will win out in the end – it is just a matter of time.

The author is a reporter with the Global Times. bizopinion@ globaltimes.com.cn