A surge in Chinese lending and increased public spending over the past few quarter have fuelled concerns about the sustainability of such high levels of debt. As the communist regime tries to shift the economy from manufacturing-led growth, Beijing will be immediately faced with the Herculean task of creating employment opportunities for the millions who are entering the job market.
China will create 11 million new urban jobs this year according to Premier Li Keqiang during his presentation of China’s budgetary proposals delivered on Sunday. However, that may fall well short of the 15 million new workers that economists estimate will enter the market. Although USDCNH is trading well below its December peak, the pair is currently perched close to the strong resistance around the 6.9100-mark after retreating at the weekly reopening.