State Council moves to ensure employment stability

China will prolong the implementation of its temporary policies on reducing the premium rates of both unemployment and work-related injury insurance to April 30, 2021.

It is one of a string of measures the State Council will take to keep the country's employment market stable, according to a guideline published on Dec 24.

China's employment situation has generally remained stable, but the pressure of keeping employment steady is increasing given the rising challenges at home and abroad, it said.

According to the guideline, greater financial support will be provided to enterprises, especially private companies and small firms.

To create more jobs, efforts will be made to tap domestic demand for service industries such as housekeeping, tourism and elderly care. The buying of automobiles, electric appliances and digital products will also be encouraged, and cities that have restrictions on vehicle purchases will be urged to "optimize" their policies.

The cabinet also supported the flexible employment of workers through temporary, part-time and seasonal jobs, the guideline said.

To realize the steady employment of college graduates, the country will organize open recruitment of rural teachers, doctors and social workers to provide community-based services. The army will also recruit more soldiers from college and university graduates.

China will launch an extensive campaign on employment skills training. From Jan 1 to Dec 31, secondary school graduates that don't go to college and under 20 years of age can choose to attend labor training and receive subsidies. For those from rural areas and poor families, extra living allowances will be offered.

Efforts will also be made to improve the employment-information monitoring system to help both potential employees and employers, it said.

Role of private firms in economy receives boost

China will further optimize its business environment to unleash the vitality of private firms and boost competition, according to a guideline released on Dec 22.

Under the guideline, jointly released by the Central Committee of the Communist Party of China and the State Council, more sectors will be opened to private firms.

For instance, private firms will be encouraged to provide basic telecommunication services through equity participation. The firms can also engage in power generation and distribution as well as electricity selling, through controlling shares or equity participation.

They will be given entry to oil and gas exploration, development, refining and marketing as well as the construction of infrastructure related to the storage and transmission of related products.

Eligible private firms may engage in the import of crude oil products and the export of refined oil products.

Broader access is also expected in the sectors of financial services, infrastructure and social undertakings.

To boost the development of private firms, the government will ease their tax burden, and enhance the capabilities of financial institutions to serve them.
Private firms will also be encouraged to go public or issue bonds, while regional equity markets targeting private firms will get support.

The guideline also mentioned the optimization of the legal environment, stressing the protection of private firms through law enforcement and justice departments. It also referred to ensuring protection of the property of private enterprises and entrepreneurs.

Private firms are encouraged to improve corporate governance, enhance technical innovation and industrial upgrades, and participate in the implementation of major national strategies such as the Beijing-Tianjin-Hebei integrated development.