China’s slowing economic recovery forces job cuts, investment delays as reopening boost wanes

Disappointing manufacturing activity, exports data and youth unemployment have added to China’s sluggish post-coronavirus economic recovery

Manufacturers are cutting jobs, reducing operating costs and shutting down production lines, while investment and consumption is also slowing

Reading Time:5 minutes

Disappointing manufacturing activity, exports data and youth unemployment are weighijng on China’s slowing economic recovery. Photo: AP

Mandy Zuoin Shanghai,He Huifengin GuangdongandKandy Wongin Hong Kong

Published: 6:00pm, 14 Jun 2023

Having worked in real estate in eastern China for more than a decade, Lin Ling is planning to leave the industry and start a snack bar instead.

“I’ve got nothing to do at work. There’s simply no buyers,” said the 40-year-old sales manager from Jiaxing, Zhejiang province.

Lin’s salary has been cut by a third since the start of the year, with her company struggling to reduce costs and destock amid an ailing property market.

“The good days aren’t coming back. I have to try something else now,” she added.

China’s slowing economic recovery has added to Lin’s decision as disappointing manufacturing activity, exports data and youth unemployment failed to back up better-than-expected growth in the first quarter.

The world’s second-largest economy had shaken off Beijing’s restrictive coronavirus restrictions at the end of last year, but exports dropped to their second-lowest level since May 2022 last month, while factory activity contracted further to the lowest level since the end of last year.

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