China says it will use various policy tools to support jobs

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© Reuters. FILE PHOTO: A panoramic view of Tianjin, China, September 7, 2021. Photo taken on September 7, 2021. REUTERS/Tingshu Wang

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BEIJING (Reuters) – China will work to stabilize its economy and will use various policy tools to support employment, state media quoted the Cabinet as saying on Wednesday.

China’s fiscal and monetary policies will prioritize employment and use various policy tools to help avoid job losses, the cabinet said after a regular meeting.

The State Council stated that the new downward pressure on China’s economy in April was further increased due to the impact of the new round of the epidemic that was greater than expected and the changes in the international situation.

The economy has taken a hit as local authorities race to stem the spread of a record number of COVID-19 cases, which has led to full or partial lockdowns in dozens of Chinese cities, including a city-wide lockdown in the commercial hub of Shanghai.

The official unemployment rate hit 5.8% in March, near a two-year high.

China will waive interest on student loans due this year for graduates from this year and last year, the cabinet said.

Guarantee price stability, food production and material supply.

The cabinet said it would add an additional 50 billion yuan ($7.45 billion) in renewable energy subsidies to central government-backed power companies.

China will also expand effective investment by channelling more private funds into infrastructure projects through the issuance of real estate investment trusts (REITs), the cabinet said.

In a separate statement, the China Securities Regulatory Commission said it would launch a special corporate financing plan to firmly support the private economy.

The China Securities Regulatory Commission said the plan, funded by the state-owned China Securities Finance Corporation, would support private companies with promising prospects and competitive technologies.

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