HANGZHOU – Enterprising Chinese college graduates will be able to borrow up to half a million yuan ($106,000) in the wealthy province of Zhejiang to start a business, and if it goes belly-up, the government will help pay at least 80 per cent of the loan.
The generous plan, unveiled at a news conference hosted by China’s state planner on Thursday (Feb 17), underscores official concerns about job prospects for the country’s millions of graduates in a labour market that has tightened due to slowing economic growth.
If graduates’ startup businesses go sour, the government can help pay at least 80 per cent of their loans and 100 per cent if it is less than 100,000 yuan, Chen Zhong, vice director at Zhejiang province’s Human Resources and Social Security Department, told reporters.
College graduates can also enjoy a living allowance and housing subsidies from 20,000 to 400,000 yuan if they work in Zhejiang, China’s fourth-biggest province by economic output.
“College graduates are valuable human resources… This year, there are more than 10 million college graduates across the country, which is a good opportunity for us,” Chen said.
