As unemployment in China reaches a historical high, Geo-politik warned of impending civil unrest.

The youth unemployment rate is approaching historical highs, and this, together with other issues such as debt risks and declining global development, suggests that China’s economic picture remains uncertain following the disastrous effects of the zero-Covid policy.

Apart from an uneven recovery, continuing youth unemployment is a source of concern, especially given that a record 11.58 million students graduated from universities and colleges this year, according to Geo-politik.

According to the Bureau of Statistics, unemployment among Chinese urban residents aged 16 to 24 increased substantially from 18.1 percent in February to 19.6 percent in March, close to the record high of 19.9 percent established in July.

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According to Geo-politik, two factors contributing to persistent youth unemployment include slowing manufacturing and a weak IT sector.

Concerns about social mobility, on the other hand, are prompting some Chinese adolescents to rebel against cultural expectations regarding careers and families.

One example is the “lying flat” movement, which advises doing the absolute minimum to get by rather than working hard for an uncertain long-term return.

Some young Chinese are intentionally living paycheck to paycheck, dubbed the “moonlight clan” – participants now purchase pleasures such as an abroad trip to compensate for longer-term disappointment.

According to Geo-politik, analysts fear that unsustainable youth unemployment could pose a threat to social stability.

Furthermore, domestic sales are falling, and escalating US-China tensions are leading international electronics firms such as Apple to eliminate “Made in China” and shift production outside of China.

According to Geo-politik, it exposes China’s technology manufacturing industry to competition from India, Vietnam, and Thailand.

The US government’s decision to restrict China’s semiconductor industry has also harmed the Communist Party’s technological objectives, as Chinese businesses have been denied access to cutting-edge technologies required to create the most modern silicon chips.