At present, unemployment has begun to appear in some parts of China, especially in Shanxi and Shandong provinces, which are important coal producing areas. Liangzhuang Mine and Wennan Mine in Tai'an District of Shandong Province are still in arrears with the monthly salary of employees in 2015. Most of them have started to lay off employees or take diversion measures. In addition, several coal mines have clearly told employees to pay only four months in 2016. Shanxi Large Coal Group, such as Jinmei Group, Coking Coal Group and Chun'an Group, have begun to implement measures such as staff reduction and non-stop pay. "In view of the seriousness of the overcapacity problem and the rising non-performing loan ratio, some unemployment is inevitable." The chairman of the European Union Chamber of Commerce in China said that it is fortunate that the scale of this problem is smaller than that of the last century. Late years. “This fact adds to the complexity of the problem, but it can be resolved through the social security plan.†The report said that the National Development and Reform Commission had promised in January this year that the government would introduce appropriate social policies to provide protection for laid-off workers. The central government set up a special fund to reward local governments that cut excess capacity, which will be used mainly to compensate laid-off workers. “It’s no longer a problem to deal with overcapacity, because the cost of maintaining the status quo will be high.†Woode said that although from 2007 to 2015, the annual Central Economic Work Conference will address overcapacity as an important issue. The fundamental change has not happened. When analyzing the reasons for overcapacity, the report pointed out that some manufacturers regard overcapacity as an opportunity to gain market share. Companies that believe they can withstand the overcapacity storm choose to further expand their business activities and expect other companies to be eliminated by the market. If this expectation is finally realized, these companies will receive substantial market returns. The problem is that there are a large number of companies trying to use this strategy to withstand overcapacity. In addition, the report specifically pointed out that the ability of enterprises to innovate is an important factor to curb overcapacity. The European Union Chamber of Commerce in China is an independent official endorsement institution for European companies in China. It was established on October 19, 2000. The total number of members is about 1,600, and there are 7 local branches in 9 cities in China. Seamless Line Pipe,Precision Steel Tube,Seamless Austenitic Tube,Cold Drawn Seamless Steel Tube Zhejiang Ruimai Stainless steel Tube Co.,Ltd. , https://www.ruimaitube.com
In the next two years, 30% of China’s coal, steel, electrolytic aluminum and glass industries will be unemployed.
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The European Union Chamber of Commerce in China recently released the latest overcapacity research report in Beijing. In the next two years, 30% of the workers in China's coal, steel, electrolytic aluminum and glass industries will be unemployed. By then, 3 million laid-off workers will be added in China. The impact of the quantity on the unemployment rate is minimal.