The government needs to try harder to create new jobs by “breaking through stereotypes,” Li the word during the main annual political meeting in Beijing. “China has 900 million workers. Without jobs, there are 900 million mouths that need to be fed. With jobs, there are 900 million pairs of hands that can create extraordinary wealth.”

Suggestions that street vendors can be the answer to China’s unemployment problem are not limited to Li’s statement at the meeting. “Cellular vendors” are also mentioned in the annual report government work report – which maps Beijing’s priorities for this year – for the first time since he took office seven years ago. Li continued to praise street vendors after a meeting during a visit to eastern Shandong province.

Li’s message came at a time of stress for the world second largest economy. From January to March, China’s GDP shrunk for the first time in a few decades. The unemployment rate has also worsened since 2008 coronavirus pandemic begins, and unofficial analysis shows that as much 80 million people might not work this spring. Before the outbreak, authorities said they needed to create around 11 million new jobs each year to keep jobs on track.

Impetus for technology

The idea of ​​vendors flooding the streets of high-tech metropolitan cities like Shanghai and Shenzhen caused controversy in China in part because Beijing has spent years growing the country’s image as an advanced global superpower. Xi The signature policy project, “Made in China 2025,” has pushed the country to compete with the United States to gain influence through billions of dollars of investment in future technology.

“Street hawking is something that Xi doesn’t like, because it tarnishes the successful and beautiful image of China that he likes to project,” said Professor Steve Tsang, director of the SOAS China Institute at the School of Oriental and African Studies at the University of London.

Xi himself in recent weeks has reaffirmed his long-standing push for high-tech solutions to China’s economic woes. He recently called on countries to invest in next-generation 5G and satellite networks as part of a plan to encourage economic growth and employment.

Hard political reality

In addition, he said, it might not be as effective as Beijing used to hold large and expensive infrastructure projects as a way to overcome its economic problems.

China’s response to its last major economic shock – the 2008-2009 global financial crisis – involved massive investment in roads, airports and high-speed rail lines. This time, the stimulus line is saturated.

The recent financial crisis also left China with a lot of debt, so it was important for this country to focus this time on private consumption, Zhu added.

Tang Min, an adviser to the Chinese government, recently told reporters in Beijing that peddling the streets will not only create jobs but also address public concerns about overcrowding indoors amid the ongoing pandemic.

“But that cannot replace the ‘ordinary’ economy – what can be sold or bought on the streets is very limited,” Tang said. “The government cannot leave it unmanageable – it must be regulated as we continue to experiment and explore this option.”

During May’s annual political meeting, Li was frank about China’s problems, and the extent to which some people might not be able to participate in the country’s high-tech future. About 600 million Chinese – about 40% of the population – earn an average of only 1,000 yuan ($ 141) per month.

“Li is trying to overcome an urgent problem with … a realistic approach,” said Willy Lam, assistant professor at the Center for Chinese Studies at the University of Hong Kong. Even though the street vendor’s approach might not be perfect, he said, there might not be a better alternative to creating a lot of work in a short amount of time.

“Employment is a very important issue that can trigger political upheaval … Li seems to be worried about the catastrophic results of massive job losses.”

Tsang, director of the SOAS China Institute, said that Li was likely just trying to do his job overseeing the country’s main economic policies.

“The pandemic has allowed him to play more of the prime minister’s established role in running the economy, something he has often tracked in the Xi era,” Tsang said. “He sees how the economic impact of Covid-19 will require a pragmatic and more assertive approach, so as to enable, even encourage, street sellers for those who are laid off as a result of a pandemic.”

The regional government is moving forward

Public discussions about Li’s insistence on street vendors in China have faded in recent days because big cities – including Beijing and Shenzhen – explain that the policy is not accepted there.

“In fact, street stalls will not completely disappear,” said Lam, professor at the Chinese University of Hong Kong. He hopes the regional government will continue to advance with the plan as long as unemployment remains a major concern.