Liquor Market, Orders to Strengthen Support for the Poor and Nongmingong... 'Appeasing Public Sentiment'

[Image source=Yonhap News]

[Asia Economy Beijing=Special Correspondent Park Sun-mi] The Chinese government is strengthening welfare support to help socially vulnerable groups such as the poor and migrant workers withstand the economic shock caused by the COVID-19 pandemic.

According to the state-run Xinhua News Agency on the 22nd, Chinese Premier Li Keqiang held a State Council executive meeting the day before, emphasizing the guarantee of people's livelihood and instructing to strengthen support for socially vulnerable groups.

First, he ordered enhanced support for the rural poor population. He instructed that labor from the poor be given priority in national-level major projects and that the proportion of wages paid in these projects be raised from the existing 10% to 15% to expand employment. He also announced that the repayment period for small credit loans of the poor population approaching maturity will be extended until the end of the year.

The State Council also requested local governments to cooperate so that migrant workers, who have not received welfare benefits until now, can receive unemployment benefits or minimum living security funds. Until now, migrant workers were not eligible for unemployment benefits. Premier Li Keqiang emphasized, "To respond to unprecedented challenges, more tailored measures must be taken to guarantee the basic livelihood of the people."

This directive from the State Council came amid a crisis where public sentiment could be shaken, as China announced a record low economic growth rate of -6.8% in the first quarter of this year due to COVID-19. China has set a goal to double its gross domestic product (GDP) from 2010 levels and lift all 1.4 billion people out of poverty, but the impact of COVID-19 has made achieving this goal uncertain.

In this regard, Hong Kong's South China Morning Post (SCMP) interpreted this as a shift in the Chinese government's policy priorities from pursuing economic growth to ensuring social stability and securing employment due to the economic contraction in the first quarter. The newspaper explained, "An unprecedented employment crisis has occurred, with estimates that more than a quarter of all employed people in China?250 million?are unemployed due to COVID-19. However, the current social security system covers only a very small number, excluding about 300 million migrant workers, leaving most without assistance and neglected."

This content was produced with the assistance of AI translation services.