China urges more aid for people in need as economic woes persist

The Chinese government has urged local officials to provide more financial relief or step-up one-time allowances to people in need before major holidays over the next month, as China's economic difficulties are set to extend into 2025.

China's economy has struggled to gather steam this year, mainly due to a protracted property crisis and weak domestic demand. Securing employment, particularly for new college graduates, is also a policy priority, authorities said.

Before New Year's Day and the Lunar New Year in late January, local governments with financial capacity are encouraged to distribute relief funds or step-up one-time allowances to those in need, the ministry of civil affairs said on Saturday.

The ministry issued a similar call in late September before a major holiday for one-off assistance to the extremely poor, orphans and those in difficulty.

According to the ministry's weekend statement, assistance to certain groups, such as unemployed people who have not been paid unemployment insurance and those without a source of income, must be strengthened.

Jobless college graduates, the ill and families facing financial difficulties should also receive help, it added.

According to official data, China's unemployment insurance system paid out 160.07bn yuan (R411.19bn) from January to November — up 25.5% year-on-year.

The ministry also urged local governments to better monitor low-income groups.

The World Bank, in a report last Thursday, said the pace of China's poverty reduction slowed in 2024 and is expected to decelerate further in 2025 and 2026, due largely to slower economic growth projected in years to come.

Tepid household consumption, the main drag on the economy, is the key to next year's growth recovery, analysts said. Policymakers have vowed to revive household demand.

Reuters