The rich and poor Chinese are all ‘ instilled ‘ Covid-19

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Li Ming, 36 years old, marketing director for a car company in Beijing, first felt a hard time in his life.

When the Covid-19 broke out, car sales dropped sharply and she was given a dishonesty from February. Her husband, an airline, also had a 40% reduction in wages.

“Suddenly, half of my family’s income evaporated,” Li said. “I haven’t had a good night’s sleep for months. We have a home loan to pay and two children. They’re becoming a burden. “

Li Save 12,000 currency (1,700 USD) per month by dismissal of family maid. “I explained and told her not to come back again after the Lunar New Year,” Li Cho. “After a long silence, she agrees. She said nothing but only love to my children. She spent three years living with the children. “

Workers assemble electronic components at a factory of Foxconn in Shenzhen, China. Picture: AFP.

Workers assemble electronic components at a factory of Foxconn in Shenzhen, China. Photo: Afp.

In addition to life loss, the Covid-19 also caused the economy to be severely affected and few people crossed the epidemic without injury. But while the middle class faced the prospect of only having to give up luxuries, the people at the bottom of the revenue tower in China had to confront a potential disaster.

The unemployment rate in China has increased to 6.2% in February, record highs. The number was improved to 5.9% in March when many businesses reopened due to the most controlled translation. However, economic experts warn that the worst has yet to come for the majority of the Chinese labour force.

According to a report from the Economist Intelligence Unit on 22/4, China’s unemployment rate can be up to 10% this year and an additional 22 million jobs in the municipality will be lost. UBS investment company months ago Chinese estimates have lost 50 to 60 million jobs in the service industry next to 20 million jobs in the industry and construction.

China’s unemployment rate is given based on data gathered from 31 major cities. The situation in smaller cities and rural areas is said to be even worse.

“The gap between the Chinese region is huge,” Hu Xingdou, independent political economist in Beijing, commented. “While people in large cities and coastal areas are struggling to sustain normal lives, people in provinces deep within the mainland and hungry areas are at risk of losing their livelihood or the fact that they are no longer livelihood.”

Peng Lixiang, 38 years old, from Shandong Province, has earned 1,000 yuan (nearly 141 USD) per month with the job at a hotpot restaurant in Heze, one of the poorest cities in the province. The Covid-19 crisis caused the restaurant where Peng worked to close the second month. You become a unemployed.

Peng’s husband only occasionally did the time job. As the main pillar of the family, Peng gives her or she does not know where to make money to feed her 8-year-old daughter and repay the building money.

She applied for work at the factories and restaurants in the city but was rejected.

“I don’t think it’s going to be as hard as this,” Peng shares. “I am willing to accept any work whether heavy or low wages, as long as I do not have to do the night because I also have to take me. I just need a job. “

Peng is not the only one who has difficulty in finding work in towns and cities that are located deep inland in less prosperous China. This is why millions of migrant workers, like Cao Jin, were 39 years old, returned to coastal cities to find work after several months of blockade.

On 1/4, Cao from Su Hue, city in Hubei province, catch a speedboat to Guangdong, China’s production hub. Here, he hopes to get back to the line supervisor at a thermal plate manufacturing company for the electrical equipment in Foshan.

But after a 12-day isolation preventive in the factory dormitory, Cao received the announcement that his work is now only night shift, working from 18h to 4h a.m., 5 days per week, with a salary of 2,000 currency/month (nearly 282 USD), only by 1/4 earnings before.

“It’s not enough to pay for my living expenses in Foshan, but don’t talk about family support in Hubei,” he said.

Cao tried to negotiate with the boss but only received the answer that because the order was lost 50% so the factory decided to reduce the production line from 10 to 5. The number of employees also fell by half, down About 300 people.

“I have no choice but to get off the job,” he said.

High for or he spent a few days later to find work in Fuoshan but without success. Friends and former colleagues explained to him that foreign demand for Chinese goods decreased has been an impact on the entire supply chain.

Lumber workers in a factory in the city of Tuy ha, Heilongjiang province, China, day 15/4. Photo: Reuters.

Lumber workers in a factory in the city of Tuy ha, Heilongjiang province, China, day 15/4. Photo: Reuters.

Foshan is home to countless home appliances manufacturers offering mainly to foreign markets. One of these, the Midea group, reported a quarter-year turnover of 23%, while the Gree Electric Appliances Company, headquartered in Zhuhai, faced a reduction of up to 50%, largely due to declining exports.

China’s march export value has fallen 6.6% over the same period last year, followed by a decrease of 17.2% in January and February.

March 4 Witness A 3.5% increase in exports when some Chinese trade partners escape the blockade order. However, contributing to this increase is mostly the order that existed last year.

According to Rosealea Yao, analyst at the market research firm Gavekal Dragonomics, the level of China’s recovery will be “still quite shallow” due to the global demand remaining at the weak level.

“Export flouridates than expected in 4 months but new orders are still drastically reduced. On the other hand, the impact from the growth collapse in the US and Europe hasn’t fallen down, “she reviews. “The loss of employment in the export manufacturing sector will be worse instead of improving.”

A report by Fitch Ratings announced the last week that the impact of the epidemic on global economy is increasing pressure on the Chinese labour market.

High, migrant workers have been working in the manufacturing industry for more than 10 years, said he has never encountered a difficult job market as it is today. “I don’t know how ever the economy will be good, but this year, I’m sure it won’t work in the manufacturing industry anymore after seeing a series of factories having to cut jobs and production lines,” he said. “Maybe I’ll go to the North City and find a home decor job.”

This can be a wise choice when the Chinese property industry is showing signs of going up thanks to available and cheaper loans along with changes in government policy.

“New household and land reforms can increase demand in the real estate and construction industry, in conjunction with the plan to accelerate the renovation of the old town by the government,” Wang Tao, economist at UBS, determined.

According to Wang, the latest changes in the household system can help migrant workers register for permanent residence, thereby having access to social services and education in cities with a population of up to 5 million people. Thus, consumer spending and real estate demand will increase.

However, the prospect is still obscured by the impact of Covid-19 on household income, Wang cho.

According to data from the National Statistical Bureau of China, the average income available by urban residents in the first quarter of this year has decreased 3.9% to 11,691 yuan (nearly 1,650 USD), while this number in rural area decreased by 4.7%, down to 4,641 currency (over 650 USD).

Vu Hoang (According to SCMP)

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