University graduates in Zhejiang province will be able to borrow up to half a million yuan ($78.9 thousand) to develop their business. If the young entrepreneur goes bankrupt, the government will pay 80% of the loan amount. The plan, unveiled by the country's National Development and Reform Commission (NDRC), highlights authorities' concerns about job prospects for millions of graduates amid slowing economic growth.
Last week, the NDRC said the government would offer special assistance to young entrepreneurs and introduce incentives for small companies to hire new graduates, who are estimated to reach a record 10.76 million this year.
As part of the loan program in Zhejiang, the government will repay the loan in full if the borrowed amount is less than 100,000 yuan ($15.7 thousand), said Chen Zhong, deputy director of the Zhejiang Department of Human Resources and Social Welfare. Graduates who will work in the province may also qualify for living allowance and housing subsidies ranging from 20,000 to 400,000 yuan ($3,100-$63,200).
New graduates coming to Zhejiang will also be able to get hukou (registration) without any conditions, Chen said. The restrictions will only applying for a hukou in the provincial capital, Hangzhou County.
Zhejiang, China's fourth-largest province by output, will also become a testing ground for the so-called "shared prosperity" movement, tasked with developing policies to reduce income inequality by 2025.
bbabo.Net