China prepares massive lay-offs and compensation

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https://www.rt.com/business/334108-china-layoff-steel-coal/

Beijing has prepared a plan to lay off five to six million state workers in the next three years, Reuters reports. According to the media, the authorities are aiming to tackle overcapacity and pollution and have prepared lots of cash to prevent social unrest.

China will spend 150 billion yuan ($23 billion) in compensation for laid-off workers in just the coal and steel sectors. The overall job cut could reach 5-6 million workers in sectors facing a supply glut, the media reports, quoting two ‘reliable’ sources close to the Chinese leadership.

The figure will grow according to the report, as more spending will be needed to help other industries. China will also have to pay to handle the debt left behind by ‘zombie’ state companies. These are firms that continue to operate even though they are insolvent or near bankruptcy; some of them continue to pay workers fearing the social impact.

In December, Premier Li Keqiang said that as “for those zombie enterprises with absolute overcapacity, we must ruthlessly bring down the knife.

Zhang Yi, Chairman of the State-owned Assets Supervision and Administration Commission, said in January that dealing with ‘zombies’ is difficult, but “officials need to… use today’s small tremors to prevent a future earthquake.”

Meanwhile, speculation about the deepening slowdown of the world’s second-biggest economy has intensified.

China’s official manufacturing purchasing managers’ index (PMI) fell to 49 in February from 49.8 in January, which is weakest result since February 2009 and the seventh straight month of decline. Any reading below 50 means contraction.

 “While the Chinese New Year may have distorted the PMI figures in January and February, the average level of the two months still remained at 49.2, below the benchmark level,” said ANZ analysts in a research note, quoted by the FT.

Last year, China reported its weakest economic growth in 25 years at 6.9 percent. It’s expected that slowdown will continue this year. Beijing has set the goal at 6.5-7 percent GDP growth in 2016.

———–

“Beijing has prepared a plan to lay off five to six million state workers in the next three years”

in a nation of a billion thats not as much as it seems..

“China will spend 150 billion yuan ($23 billion) in compensation for laid-off workers in just the coal and steel sectors.”

all the new green jobs will fix that..

401

~ by seeker401 on March 5, 2016.

7 Responses to “China prepares massive lay-offs and compensation”

  1. http://needtoknow.news/

  2. http://andrewgavinmarshall.com/2016/03/03/money-managers-for-mankind-china-in-the-age-of-global-governance-part-iii/

    “The integration of China into the structures and systems of global economic governance will have lasting ramifications. Not simply because it represents a shift from the dominance that the G-7 nations held over the global economy for the past four decades, but because the Chinese model of state-run totalitarian capitalism itself presents an alternative approach to constructing a market economy. As China increasingly becomes a part of the governing structure of the world economy, its model will gain increased influence. Indeed, if war and hostilities between the other great powers are to be avoided, the future of global capitalism may well rely on a combination of Western markets and institutions backed up by totalitarian institutions like the regime in Beijing.

    Given that the capitalist system is experiencing a crisis in its legitimacy – with warnings from the head of the Bank of England, the IMF, and influential financial dynasties that the system is increasingly under threat due to its excesses – democracy may no longer be compatiblewith capitalism. And totalitarian state structures may be the only way to save capitalism from itself.”

    • because the Chinese model of state-run totalitarian capitalism itself presents an alternative approach to constructing a market economy. As China increasingly becomes a part of the governing structure of the world economy, its model will gain increased influence. Indeed, if war and hostilities between the other great powers are to be avoided, the future of global capitalism may well rely on a combination of Western markets and institutions backed up by totalitarian institutions like the regime in Beijing.

      • WE ARE LIVING DIFFERENT STANDARDS. THE COMMUNIST DO PRACTICE CAPITALISM. THE WAY THIS WORLD WORKS AND THE GLOBAL ELITE CABAL DESIGNED IS SO, SOCIALISM IS FOR THE POOR AND CAPITALISM IS FOR THE RICH. EVERY LEADER IN EVERY COUNTRY DOES NOT LIVE LIKE THEIR AVERAGE CITIZENS DO. EVERY LEADER OF THE WORLD DOES PRACTICE CAPITALISM, BUT ONLY FOR THEMSELVES. THE CITIZENSHIP OF EACH COUNTRY MUST BE UNDER THE CONTROL OF SOCIALISM, COMMUNISM, ETC… THEY ARE ALL THE SAME LEADING TO THE SAME OUTCOME. LEADERS CAN HAVE MONEY, CITIZENS MUST SUFFER TO SUPPORT THEM. IT WOULD BE BETTER IF THEY GET UP IN THE MORNING TO COLLECT SOME TRASH, THEN THEY COULD CLAIM AN ACCOMPLISHMENT.

  3. “These are firms that continue to operate even though they are insolvent or near bankruptcy; some of them continue to pay workers fearing the social impact.”
    In the U.S, they lay you off without warning, usually just before Christmas.

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