March 21, 2022
2 mins read

Jobs market severely hit by China’s tech crackdown

The tech sector in the past decade has been one of the strongest job-creating sectors in the world’s second-largest economy….reports Asian Lite News

China’s tech crackdown has adversely affected the jobs market amid economic headwinds laden with stories about frozen headcounts and lay-offs.

China’s year-long campaign to clip the wings of the country’s Big Tech sector has taken a heavy toll and is now casting a long shadow over the employment market, reported think-tank Policy Research Group POREG.

Over the past year, China has launched a relentless crackdown on big tech firms, with a raft of new regulations aimed at curbing consumer rights abuses, monopolistic market practices, breaches of consumer data privacy, protecting minors from gaming addiction and curbing content deemed socially harmful – among other things. Most of this has been carried out under the banner of “curbing the irrational expansion of capital”.

However, it is now clear that this campaign is impacting the jobs market, reported POREG.

The tech sector in the past decade has been one of the strongest job-creating sectors in the world’s second-largest economy.

The destruction of tech-related jobs from content creation to private tutoring is translating into fears of a jobless wave, reported POREG.

Around 10 million fresh graduates will enter the job market this summer, adding to China’s growing army of young jobseekers, at a time of mounting economic headwinds amid the Ukraine crisis and another COVID-19 surge in the country.

This is threatening long-term government strategies, such as “dual circulation” – the concept of driving economic growth mainly via domestic demand to offset an uncertain and potentially hostile external environment.

The massive job cuts at Big Tech companies could bring significant economic instability, as the digital economy has taken up a greater proportion of China’s GDP in recent years, said Wang Peng, an associate professor at the Renmin University of China.

An earlier report published by Chinese recruitment site Zhaopin.com found that half of the people surveyed said their company had laid off staff in 2021 while a quarter said they were directly affected.

The country’s two most-valuable Big Tech firms, Alibaba Group Holding, which had over a quarter of a million employees, and Tencent Holdings, which had 107,000 employees, are said to be in the process of slashing thousands of jobs, reported POREG. (ANI)

ALSO READ: Will Wang Yi’s visit ease India-China tensions?

Previous Story

Saameynta to reboot Somalia

Next Story

Ex-minister urges Afghans to return home

Latest from Asia News

White House: Israel OKs Gaza Truce

Hamas said Thursday that its leadership had received a new Gaza ceasefire proposal from Witkoff through the mediators and was studying it…reports Asian Lite News The White House said that Israel has

No Talks Till Terror Ends: India to Pakistan

The MEA’s strong response came at a time when Pakistan, pushed on the backfoot by India’s decisive Operation Sindoor, has suddenly started talking about its intent on having peace talks with India….reports

BNP ramps up poll demand

Chief Adviser Yunus had earlier promised elections in December 2025, but the timeline has since been pushed back first to February 2026 and then to June 2026, fuelling suspicion and dissatisfaction among

Hasina’s Defiant Words Before Ouster

Reportedly before leaving Hasina wanted to record a farewell speech to be aired on television, but military officials declined….reports Asian Lite News Following a violent student uprising last year, the Bangladeshi military

Azhar Acquittal Sparks Outrage in Bangladesh

Jailed for nearly 13 years for war crimes, Azharul was received by party leaders and activists at the jail gate by his radical supporters….reports Asian Lite News Once accused of committing crimes
Go toTop

Don't Miss

US, China lock horns over capturing semiconductor chip market

Against this, the US in October last year declared rules

China urged not to undermine sanctions against Russia

The US and EU have urged China not to provide