Local cities in China ramp up efforts to stabilize manufacturing, employment in early 2024

Multiple Chinese cities including Dongguan in South China's Guangdong Province have recently announced a number of policies to stabilize employment and manufacturing around the Chinese Lunar New Year holidays (which falls from February 10-17) in order to ensure a strong economic start and sustained recovery in 2024.

Dongguan will offer subsidies worth 300 yuan ($42) to every worker outside Guangdong that will return to their positions at key enterprises in the city from February 12-17, while 200 yuan in subsidies will be provided for those willing to return to their posts from February 18-20, according to a circular on local government website.

In addition, enterprises in the city will get subsidies of up to 300,000 yuan for new hiring from February 10 to March 9. The city is offering a series of targeted policies to ensure manufacturing production in enterprises above the designated scale, services firms enhancing effectiveness, and enterprises attending exhibitions, among others.

Quanzhou in East China's Fujian Province and Yongkang in East China's Zhejiang Province have recently announced similar measures to encourage enterprises to expand employment and increase output for a good start in 2024.

Among the measures, enterprises in Quanzhou will receive subsidies of 1,000 yuan per worker, capped at 200,000 yuan in total, if they have taken active measures to stabilize workforce and maintain continuous production in February.

The moves came as local governments are ramping up efforts to implement pro-growth policy measures to kickstart the country's economic recovery in 2024 following the tone-setting Central Economic Work Conference in December 2023.

On the first working day of 2024, Han Wenxiu, executive deputy director of the office of the Central Committee for Financial and Economic Affairs, wrote in an article published in the People's Daily that China's economic recovery and long-term improvement remain unchanged, calling for the implementation of policies that would help stabilize expectations, promote growth and boost employment.

"Currently, the Chinese economy is experiencing comprehensive, full-loaded recovery across many sectors. The economy is expected to be better than foreign financial institutions' forecast in 2024, and may reach 5 percent growth," Cao Heping, a professor from Peking University, told the Global Times.

He said the governments should step up credit support in 2024 in order to ensure reasonable and ample liquidity to meet the needs of real economy.