China Just Dropped Its Jobs Target for the First Time in Decades

China's new Five-Year Plan omits a numerical urban job creation target for the first time in decades, amid 5.1% unemployment, rising producer prices, and AI-driven labor market anxiety. Separately, Tencent is in talks to become the largest shareholder in Chinese AI startup Manus after Beijing blocked Meta's $2 billion acquisition, signaling tighter state control over AI assets. Meanwhile, Gen Z in China is increasingly choosing smaller cities over megacities like Beijing and Shanghai, reflecting both lifestyle shifts and economic pressures.

Alice Han and James Kynge look at why, for the first time in decades, China’s new Five-Year Plan sets no numerical target for urban job creation. With unemployment at 5.1%, producer prices at a four-year high, and AI anxiety rippling through the labor market, what does it mean when Beijing, a government that treats jobs numbers as sacred, stops setting one? Then: Tencent is in talks to become the largest shareholder in Manus, the Chinese AI agent startup Meta tried to buy for $2 billion before Beijing forced the deal to unwind. Alice and James unpack why Chinese regulators intervened, what happened to Manus’s founders, and what this all signals about Beijing’s grip on its AI sector. Finally: Gen Z in China is skipping the megacities. Alice and James dig into why more young people are choosing Tier 3 and Tier 4 cities over Beijing and Shanghai, and whether it’s a lifestyle choice or a symptom of a tougher economy. Looking for the full version? Become a Prof G+ subscriber for unlimited, ad…