Beijing - (AsiaNews / Agencies) - In the first quarter of the year, Chinese state companies lost almost 60% of profits due to the pandemic crisis.
According to the State Council, the profit of large state industrial groups stopped at 130 billion yuan (17 billion euros). The collapse is due to the drop in domestic and foreign demand. The pandemic has severely damaged the global goods chain, led in recent decades by China as the main manufacturing power.
The Chinese auto sector lost 30% of profits compared to the first quarter of last year. The collapse in oil prices has also dealt a serious blow to the national oil industry: sales of refined products fell by 20% between January and March.
Chinese state industries employ around 57 million people. Their losses are reflected negatively in employment levels. In March, the unemployment rate in urban areas was 5.9%, slightly improving compared to the negative record recorded in the first two months of 2020 (6.2%), but still higher than the averages recorded in previous years. For example, Caixin reports that state-owned appliance manufacturer Hisense will lay off more than 10,000 people.
In this dramatic scenario, the earnings of Chinese families have decreased. According to the National Statistics Office, per capita income in March was 8561 yuan (1113 euros), down 3.9% from the same month in 2019.
To cope with rising unemployment and falling household resources, the government announced a package of initiatives. Of note, for the first time in the history of the country, unemployment benefits will be extended to approximately 300 million migrant workers: the group of workers most affected by the crisis.
