As the Chinese tech companies continue to face major crackdowns following Beijing’s assertion for stricter control on digital tech firms, the country’s workforce is facing stiff job loss challenges which may also hit the economy in the long run.
According to estimates, the ranks of unemployed technology workers are swelling as China’s once vibrant internet industry is hit by a harsh and capricious regulatory crackdown.
Under the direction of China’s top leader, Xi Jinping, the government’s unbridled hand is meddling in big ways and small, leaving companies second-guessing their strategies and praying to not become the next targets for the crackdown, according to Japan Times.
Further, China’s once vibrant internet industry is facing a regulatory crackdown under the direction of President Xi Jinping. Meanwhile, the crackdown on Tech Firms is having a chilling effect on the job market as many young Chinese are looking to the public sector for more stable positions, even though they pay less.
There will be 10 million college graduates in China in 2022, according to China’s Education Ministry. About 4.5 million have applied to graduate schools, up 800,000 from 2021. More than 2 million people have applied to take civil servant examinations, up by 500,000, according to the Chinese state media.
On the other hand, in mid-December, the country’s internet regulator said it had ordered platforms to shut down more than 20,000 accounts of top influencers in 2021, including people who spoke ill of the country’s martyrs, entertainers involved in scandals, and major live-streaming stars.
Earlier, China started to clamp down on tech firms under market regulations policy despite the slowdown. Also, in August last year as a part of its Centenary observation, the Communist Party issued a five-year blueprint to change China’s tech industry and the changes will continue this year.
Further, China’s crackdown has curbed Beijing’s technological company’s entrepreneurial spirit that has built its formidable tech sector dating from the early 1990s.