China’s economy grows by 5% but people remain worried about future job prospects
China has released a slew of economic data this morning, showing its economy grew last year by a solid 5% percent, meeting the government’s target.
Other annual figures released show that total retail sales of consumer goods were up by 3.5% last year, compared to 2023.
But despite these positive indicators China’s economy is still facing challenges from the real estate crisis fallout, people are concerned about their job prospects and there is a reluctance to spend money domestically.
The misty megacity of Chongqing in southern China (population 32 million people) is a good place to take the temperature of the country’s economy.
The city of Chongqing
Cathy Zhou and her mother Mrs Deng stuffed dumplings while describing their economic worries to Sky News.
Cathy has been unemployed since the end of COVID-19. She said she can’t find a job that pays her enough to live on and that salaries have halved.
Cathy Zhou, currently unemployed in Chongqing
“I used to be the headmaster of a training school,” Ms Zhou said. “Some of my friends have been at home for one or two years, looking for jobs, but can’t find any. They stay home, get some hope and look again.”
She added: “Before my friends would tell me they buy bags, buy clothes, but now they are shopping less and everyone is saving.”
Mrs Deng, a retired factory worker in Chongqing
Ms Zhou’s retired mother Mrs Deng worked in a factory for almost 30 years.
“The younger generation have less stable jobs, if they lose it they still need to pay their mortgage, so we have to save money to help them,” she said.
With Chinese New Year around the corner, the government is trying to boost consumer demand.
It’s expanded a list of subsidies to encourage people to trade in old electric products, like rice cookers and televisions, for new ones.
The government is trying to boost consumer demand
Last year, China announced a massive economic stimulus package to buy local government debt worth $1.4trn (£1.15trn) over five years.
On New Years Eve, China’s President Xi Jinping said: “China’s economy has rebounded and is on an upward trajectory.”
But President Xi also acknowledged there is deep worry too.
“The concerns of the people about jobs and incomes, elderly and childcare, education and medical services are always on my mind,” the president said. “This year, basic pension has been raised, and mortgage rates have dropped.”
Young people on the streets of Chongqing
The other concern for China has been stubbornly high youth unemployment as almost one in five can’t find a job.
Economic analyst at the Economic Intelligence Unit, Xu Tianchen, said: “I think the government is quite worried because if unemployment continues to grow, it will lead to issues with social instability and that is not something the government would tolerate.”
Read more from Sky News:
SpaceX’s 400ft Starship ‘lost’ less than nine minutes into test flight
Joe Biden will not enforce TikTok ban – leaving decision to Donald Trump
In 2023, President Xi told young people they would need to accept the hardship and “eat bitterness”.
But now the government appears to be softening its message and looking for levers to pull to create jobs and boost consumption.
Over a plate of steaming dumplings, Ms Zhou said: “I don’t think there is any ‘obvious’ results coming out of eating bitterness.”
Her best friend Pipi agreed: “If you want to get to the next level, you have to work harder and put in more effort than other people or you will just fall behind.”
World
Trump criticises Putin after potentially ‘historic’ meeting with Zelenskyy before Pope’s funeral
Donald Trump has criticised Vladimir Putin and suggested a shift in his stance towards the Russian president after a meeting with Volodymyr Zelenskyy before the Pope’s funeral.
The Ukrainian president said the one-on-one talks could prove to be “historic” after pictures showed him sitting opposite Mr Trump, around two feet apart, in the large marble hall inside St Peter’s Basilica.
The US president said he doubted his Russian counterpart’s willingness to end the war after leaving Rome after the funeral of Pope Francis at the Vatican.
Follow live updates: 200,000 mourn at Vatican
In a post on his Truth Social platform, he said “there was no reason” for the Russian president “to be shooting missiles into civilian areas, cities and towns, over the last few days”.
The two leaders held talks before attending the Pope’s funeral
He added: “It makes me think that maybe he doesn’t want to stop the war, he’s just tapping me along, and has to be dealt with differently, through ‘Banking’ or ‘Secondary Sanctions?’ Too many people are dying!!!”
The meeting between the US and Ukrainian leaders was their first face-to-face encounter since a very public row in the Oval Office in February.
Mr Zelenskyy said he had a good meeting with Mr Trump in which they talked about the defence of the Ukrainian people, a full and unconditional ceasefire, and a durable and lasting peace that would prevent the war restarting.
Other images released by the Ukrainian president’s office show Sir Keir Starmer and French President Emmanuel Macron were present for part of the talks, which were described as “positive” by the French presidency.
Mr Zelenskyy‘s spokesman said the meeting lasted for around 15 minutes and he and Mr Trump had agreed to hold further discussions later on Saturday.
The world leaders shared a moment before the service
Donald Trump and Volodymyr Zelenskyy meet in the Basilica
But the US president left Rome for Washington on Air Force One soon after the funeral without any other talks having taken place.
The Ukrainian president’s office said there was no second meeting in Rome because of the tight schedule of both leaders, although he had separate discussions with Mr Starmer and Mr Macron.
The French president said in a post on X “Ukraine is ready for an unconditional ceasefire” and that a so-called coalition of the willing, led by the UK and France, would continue working to achieve a lasting peace.
There was applause from some of the other world leaders in attendance at the Vatican when Mr Zelenskyy walked out of St Peter’s Basilica after stopping in front of the pontiff’s coffin to pay his respects.
Donald Trump and the Ukrainian president met for the first time since their Oval Office row. Pic: Reuters
Sir Tony Brenton, the former British ambassador to Russia, said the event presents diplomatic opportunities, including the “biggest possible meeting” between Mr Trump and the Ukrainian leader.
He told Sky News it could mark “an important step” in starting the peace process between Russia and Ukraine.
Professor Father Francesco Giordano told Sky News the meeting is being called “Pope Francis’s miracle” by members of the clergy, adding: “There’s so many things that happened today – it was just overwhelming.”
The bilateral meeting comes after Mr Trump’s peace negotiator Steve Witkoff held talks with Mr Putin at the Kremlin.
They discussed “the possibility of resuming direct negotiations between Russia and Ukraine”, Kremlin aide Yuri Ushakov said.
👉 Listen to Sky News Daily on your podcast app 👈
Russia and Ukraine have not held direct talks since the early weeks of the war, which began in February 2022.
Mr Trump has claimed a deal to end the war is “very close” and has urged Mr Zelenskyy to “get it done” in a post on his Truth Social platform.
He has previously warned both sides his administration would walk away from its efforts to achieve a peace if the two sides do not agree a deal soon.
Meanwhile, the Polish armed forces said a Russian military helicopter violated its airspace over the Baltic Sea on Friday evening.
“The nature of the incident indicates that Russia is testing the readiness of our air defence systems,” they said in a post on X.
On an extraordinary day, remarkable pictures on the margins that capture what may be a turning point for the world.
In a corner of St Peter’s Basilica before the funeral of Pope Francis, the leaders of America and Ukraine sit facing each other in two solitary chairs.
They look like confessor and sinner except we cannot tell which one is which.
Leaning forward hands together in their laps, Donald Trump and Volodymyr Zelenskyy stare at each other in one photo.
In another, the Ukrainian president seems to be remonstrating with the US president. This is their first encounter since their infamous bust-up in the Oval Office.
The two leaders held talks before attending the Pope’s funeral
Other pictures show the moment their French and British counterparts introduced the two men. There is a palpable sense of nervousness in the way the leaders engage.
We do not know what the two presidents said in their brief meeting.
But in the mind of the Ukrainian leader will be the knowledge President Trump has this week said America will reward Russia for its unprovoked brutal invasion of his country, under any peace deal.
Mr Trump has presented Ukraine and Russia with a proposal and ultimatum so one-sided it could have been written in the Kremlin.
Kyiv must surrender the land Russia has taken by force, Crimea forever, the rest at least for now. And it must submit to an act of extortion, a proposed deal that would hand over half its mineral wealth effectively to America.
The world leaders shared a moment before the service
Afterwards, Zelenskyy said it had been a good meeting that could turn out to be historic “if we reach results together”.
They had talked, he said, about the defence of Ukraine, a full and unconditional ceasefire and a durable and lasting peace that will prevent a war restarting.
The Trump peace proposal includes only unspecified security guarantees for Ukraine from countries that do not include the US. It rules out any membership of Ukraine.
Ukraine’s allies are watching closely to see if Mr Trump will apply any pressure on Vladimir Putin, let alone punish him for recent bloody attacks on Ukraine.
Or will he simply walk away if the proposal fails, blaming Ukrainian intransigence, however outrageously, before moving onto a rapprochement with Moscow.
If he does, America’s role as guarantor of international security will be seen effectively as over.
This could be the week we see the world order as we have known it since the end of the Second World War buried, as well as a pope.
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports1 year agoStory injured on diving stop, exits Red Sox game
-
Sports1 year agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike
-
Business3 years agoBank of England’s extraordinary response to government policy is almost unthinkable | Ed Conway