China introduces job aid and suggests additional stimulus amid rising U.S. tensions.

A job fair in Beijing in 2022. China’s urban jobless rate among those aged from 16 to 24, excluding students, stood at an elevated level of 16.5% in March 2025, according to data from the National Bureau of Statistics.

Jade Gao | Afp | Getty Images

BEIJING — Senior Chinese officials on Monday outlined plans to support jobs and help exporters, while hinting at the possibility of more stimulus in light of rising trade tensions with the U.S.

In just a few weeks, tit-for-tat tariffs between the U.S. and China have more than doubled to over 100%, forcing Chinese factories to pause production and tell some workers to stay home. Exports have been a rare bright spot in China’s economy, which has faced pressure from lackluster consumption and a real estate slump.

“Labor market stability remains a critical concern for Chinese policymakers, given its direct linkage to social stability and consumption recovery,” Goldman Sachs analysts noted in a report Sunday. They estimate around 16 million jobs in China are involved in the production of goods exported to the U.S.

Authorities on Monday acknowledged the impact of trade tensions on jobs at exporting companies. China has repeatedly emphasized that consumption is its priority for the year. However, the press conference focused more on efforts to stabilize employment.

The briefing followed an announcement from the human resources ministry on Friday regarding subsidies for companies that hire recent graduates, although specific amounts were not provided. Officials on Monday broadly discussed plans to promote entrepreneurship, increase vocational skills training, and improve wage distribution in fields with “urgent” needs.

China will provide financial support to exporters so they “will have more confidence to take orders,” Sheng Qiuping, vice minister of commerce, told reporters. He highlighted recent collaborative measures with the National Development and Reform Commission to assist exporters in selling products domestically and to reduce operating costs like rent.

Sheng was joined by senior officials from the economic planner, central bank, and human resources ministry. On top of existing employment pressures, a record 12.22 million higher education graduates are entering China’s job market this year, which is an increase of 430,000 from the previous year, according to official figures.

China’s urban jobless rate among those aged from 16 to 24, excluding students, stood at an elevated level of 16.5% in March, according to data from the National Bureau of Statistics. This marked a modest dip from 16.9% in the previous month. The overall unemployment rate for the working-age population in cities eased slightly to 5.2% in March from a two-year high of 5.4% in February.

The People’s Bank of China tends to cut rates when the labor market appears soft, Goldman Sachs analysts pointed out, citing historical patterns. They predict that by the end of September, China will cut policy rates by 20 basis points and enact a 50 basis point cut for the reserve requirement ratio, or the amount of cash banks must hold.

Chinese officials’ comments on Monday followed a high-level Politburo meeting on Friday that called for targeted measures to assist businesses, indicating that the central bank would cut rates as needed. China is optimistic it can achieve its full-year growth target of around 5% and will introduce incremental stimulus as the macroeconomic situation evolves, Zhao Chenxin, deputy head of the economic planning agency, told reporters.

He emphasized that initiatives to boost consumption and establish a state-level tech development fund would be implemented by the end of June. Beijing has intensified economic support since late September, but measures introduced so far have not led to the large-scale stimulus many were hoping for. Gross domestic product grew by a better-than-expected 5.4% in the first quarter compared to the previous year.

“We think policymakers are waiting for more clarity around the tariff impact before committing to more significant stimulus,” noted Louise Loo, lead economist at Oxford Economics, in a report on Monday. Second-quarter gross domestic product “is very likely to decelerate substantially, as exports falter, offsetting the momentum behind stimulus-driven investments.”