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East Asia

Livestreamers in China welcome move to formally recognise their profession; experts expect stricter tax enforcement

There were over 15 million livestreamers in China at last count. Those CNA spoke to believe the move will improve industry standards, while analysts say the government also gains from taxation and pushing down the jobless rate.

Livestreamers in China welcome move to formally recognise their profession; experts expect stricter tax enforcement

China's massive short video and livestreaming sector has continued to expand, with the number of professional hosts surpassing 15 million in 2023. (Photo: Qian Yongjing)

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SINGAPORE: For four hours daily, Ms Qian Yongjing gets in front of a camera in her Shenzhen office and lays out how to excel at the workplace through good communication and high emotional intelligence. 

The 40-year-old livestreamer broadcasts on Chinese social media platforms like Douyin, Kuaishou and Xiaohongshu, where she has amassed five million fans and counting. She didn’t want to share her exact earnings, only disclosing that she earns six digits in yuan monthly.

It is a relatively recent reality for Ms Qian. Like many others, the mompreneur with over 10 years of teaching experience in workplace communication was forced to pivot her business online when the COVID-19 pandemic hit in 2020.

A screengrab from the livestream lesson on overcoming stage fright conducted by Shenzhen-based livestream host Qian Yongjing. (Photo: Qian Yongjing)

Her team at Homeland, a Shenzhen-based content creation company she founded in 2015, went through much trial and error during the first two years of the transition. They needed to master the use of an online platform for conducting lessons and to analyse the demands of the online market.

“We struggled a lot but we managed to push through. We believe this field (livestreaming) was not only vital during the pandemic, and it has been proven so,” Ms Qian told CNA.

There were over 15 million livestreamers or “wangluo zhubo” in China at the end of 2023, according to the state-run China Netcasting Services Association. 

Despite this, the profession isn’t officially recognised in the country, which means those in that line of work aren’t eligible for government support in areas such as training and development. 

But this could soon change as China looks to give livestreamers the formal nod along with more than a dozen other occupations - most linked to high-tech industries.

The move is taking place as the world’s second-largest economy looks to bolster the job market amid heightened youth unemployment, and galvanise economic growth against a raft of domestic and external challenges.

More than 40 per cent of mainland internet users considered short videos and live streams as their “primary consumption channel”, according to a 2023 survey by the state-run China Netcasting Services Association. (Photo: iStock/somethingway)

LIVESTREAMING AS AN OCCUPATION

On May 24, the Ministry of Human Resources and Social Security made public a list of 19 professions it plans to formally recognise. It was open for public review until June 7, after which amendments - if any - will be made before the occupations are included in the official roll.

It is unclear how long the entire process will take. Based on previous records, notices for reviews were released in batches and revision works took three to five years to be completed.

Roles like livestream hosts, generative artificial intelligence system operators, intelligent connected vehicle testers and intelligent manufacturing system maintenance personnel made the shortlist, in a nod to China’s high-tech push.

But the inclusion of livestream hosts caught the most public attention, yielding multiple news reports and plenty of discussion on social media platforms.

While some expressed scepticism, most of the comments were positive. An unofficial Sina News poll on Weibo revealed that 57 per cent of 1,756 respondents view livestreaming as a lucrative profession.

“Stop working part-time or farming for a living, everyone should just be a livestreamer and enjoy benefits from national policies,” one commenter wrote, garnering 143 likes.

Another user remarked: “There are so many livestreamers out there; regardless of the content, this is a natural step.”

Others discussed the possible implications. “Besides purchasing equipment, you now have to pay taxes,” one user wrote.

The ministry defines a livestream host as a person engaged in real-time broadcasting or interactive services through means such as audio, video, and graphic information. There are also seven listed job scopes, including scripting broadcast content.

A record 11.7 million graduates are set to enter China’s workforce this year. Livestreaming has a reputation as one of the jobs with a lower barrier to entry.

Netizens in China often quip that female graduates will work as livestreamers and males as food delivery men. “Livestreamers order delivery food when hungry and delivery men watch livestreams when they are tired, creating a perfect closed loop.”

BENEFITING JOBSEEKERS AND THE GOVERNMENT

China has been constantly revising jobs on its official professions list over the past decade. The document has undergone two major revisions since its publication in 1999. The latest version in 2022 features 1,636 professions - about 400 fewer compared to the earliest edition.

Additionally, a supporting document detailing skills and profession specifics has been updated three times since its publication in 2012.

When unveiling the latest planned additions last month, the Ministry of Human Resources and Social Security stated that recognising new occupations can further enhance the professional sense of belonging of practitioners, allow them to benefit from relevant national policies while also enhancing employment.

Having a profession formally recognised comes with several perks for both people currently in that line of work, as well as those seeking to join the field. It guarantees some form of official status and proper evaluation through certification by relevant agencies.

This grants the individuals access to benefits such as vocational training and skills appraisal subsidies.

Professor Liu Erduo, a labour expert from the China Institute for Employment Research (CIER), suggests the list helps inform people when searching for a new job, as they can reference which occupations have been added, updated or even removed.

There is also a more practical reason at play. “When the occupation becomes legit, the authorities will monitor tax collection more closely,” he said.

From a broader perspective, this could even reduce unemployment numbers, he noted. “Previously, these individuals could claim to be unemployed, but they can no longer do so when their professions are made official; they are out of the grey area.”

President Xi Jinping sounded a clarion call late last month for authorities to place employment and job creation front and centre, according to a South China Morning Post (SCMP) report.

“We must develop new business entities and new business models vigorously, actively cultivating new professions and developing new sources of job growth,” he said after a Politburo study session on May 27, reported state media according to SCMP.

China’s surveyed urban unemployment rate came in at 5.2 per cent in March, down 0.1 percentage points from the previous month and from March 2023, indicating a generally stable employment situation, according to the National Bureau of Statistics.

This year, the Chinese government aims to create over 12 million new jobs in urban areas and keep the urban surveyed unemployment rate at around 5.5 per cent. The two targets are similar to those set last year.

Meanwhile, the youth unemployment rate was 14.7 per cent in April, according to official data. It covers those aged 16 to 24 and excludes students. The jobless rate hit a record high of 21.3 per cent in June last year when students were still part of the count.

Beijing has been under pressure to create more jobs as a record number of graduates are set to enter its workforce this year. (Photo: Reuter/Jason Lee/File Photo)

LIVESTREAMERS REACT POSITIVELY

Analysts CNA spoke to did not see the inclusion of livestream host to the list as a surprise, as they noted the 15-million-strong workforce dedicated to this occupation.

“Once there is a notable number of players in the field, the authority will consider adding it to the list,” said Prof Liu.

Ms Qian, the livestreamer based in Shenzhen, believes the move could improve the overall quality of livestream hosts as they will be subject to tighter regulations and requirements.

“Some livestream hosts will be weeded out even though the Internet is already a filter on its own,” she remarked.  

Similar sentiments were expressed by another livestream host, who wanted to be known as Chen. “The industry will be more legitimised as negative value-oriented content like showing off wealth will be removed by the authority,” said the 30-year-old accounting major graduate.

She added that it is hard for parents to monitor what their kids are watching on the Internet. “When there are fewer individuals with inappropriate content, hopefully parents feel safer letting their kids view livestreamed videos.”

TARGETED HIRING AND BETTER TRAINING

Apart from plans to recognise new professions such as livestreaming host, 29 new work classifications - which are specialisations under specific professions - were also unveiled on May 24 by the Ministry of Human Resources and Social Security. These include roles like providing shower assistance for seniors and coffee roasters.

Under the sports facilities manager role, six roles related to snow sports, including snowboard repair engineer, ski track planner and skate technician, have been added. 

Laying out these specialisations will improve the employment process, says Mr Zhang Ruijia , who is in charge of the investment department at one of the largest ski facilities in Hemu village, located in Xinjiang’s Altay prefecture. 

“This will be more targeted because these jobs aren’t found anywhere else except for ski resorts and ice skating rinks,” said Mr Zhang, adding that previously, they could only put up general job advertisements and then train new hires for specific roles after they started working.

He gave an example using one of the more established roles - a ski lift mechanic. "It was much easier to hire staff for this since it is already a mature industry in China,” said Mr Zhang. “We could just list out the specific job as it is.”

Mr Zhang - who works closely with vocational schools offering snow facilities-related majors - also pointed out that having a clear indication of professions helps students work towards their ideal career roles.

Six snow sports are among the newly classified types of work that China plans to add. (Photo: Jikepulin International Ski Resort)

Recognising more professions and types of work also presents better training opportunities for those roles, according to Prof Liu from CIER, as companies or individuals that provide training for the latest additions can have easier access to funding and faster approvals.

Ms Yang Wenwen, founder of Xinlu Education Consultancy, which provides training for new livestream hosts online and on-site, echoes this.

“Online training is easy, but those selling products need on-site networking,” she said. “With the profession recognised, it will be easier to obtain licences for physical locations.”

Mr Lu Haoran, 29, a freelance videographer in China, points out that livestreamers could also benefit financially. “This helps them attract advertisers, especially those tied to the government,” he said.

However, he thinks that the job description is too limited. “We typically use 'livestreamer' to describe people who sell products through livestreams. It does not encompass jobs like travel or food bloggers.”

Mr Lu posts travel reels on Douyin and Xiaohongshu in his free time. He has over 700,000 followers and was featured in a programme by national broadcaster CCTV. 

A screengrab from a viral video on Lu's Douyin account. (Photo: Douyin/@Xiaochouyululu)

Even so, he told CNA he would not consider pursuing a full-time job as an influencer even if the profession becomes official with all the potential benefits that entails, as he views it more as a passion project. 

While their activities can overlap with those of livestreamers, influencers are currently not on the list of formally recognised professions. The occupation is also not in the latest shortlist.

Profit is also a factor. “It is too unstable,” he said, sharing that his current job earns him up to 500,000 yuan (US$69,000) annually. In comparison, the income from his tie-ups with advertisers on social media is around 7,000 to 10,000 yuan monthly. 

“Posting videos on TikTok doesn’t really earn you money," he quipped.

Source: CNA/mc(ws)
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