How Do Trade Tensions Affect Chinese Labour Markets?

The US-China trade tensions have a long-lasting impact on China's economic development and its labour market. By reviewing the development stages and characteristics of China's foreign trade practice, this chapter argues that although the impact of the trade war on China's employment is unnoticeable in the short term, it will become more apparent in the long run. The current trade tensions, together with an already slowing economy, will exert a negative influence on China's employment market by reducing job opportunities, changing employment structure and creating a more competing environment for the labour force. Moreover, the impact of trade tensions varies a lot when it comes to different industries. The low-value-added industries with high demand elasticity are more likely to be affected by trade tensions, while the high-value-added industries with low demand elasticity suffer a less adverse effect. The difference in industries may further complicate China's labour market. This chapter also proposes several possible measures for China to deal with the risks in the labour market brought about by the trade tensions.