The United States and China have initiated talks to improve their relationship as the two largest economies in the world. China's significant spending power is vital for global financial stability, but the country is currently facing signs of an economic downturn. In May, the youth unemployment rate reached a record high of nearly 21 percent, and there was a 7.5 percent year-on-year drop in exports. Property investment has also declined. Although street food scenes in China might suggest a strong economic rebound from the coronavirus, experts believe this is not the case. Consumers in smaller cities are opting for low-cost options due to pressure on household incomes. The economy is slowly recovering after three years of dealing with the pandemic. University graduates are particularly affected by China's economic struggles, with youth unemployment hovering at or above 20 percent. Many graduates face difficulties finding jobs due to intense competition. This situation has led some individuals with jobs to be cautious about spending, fearing financial insecurity.
Vocabulary:
• Unemployment
The state of being without a job.
• Downturn
A decline or decrease in economic or business activity.
•Doldrums
A situation in which there is high unemployment, very little economic activity or growth.