With almost 12 million new university graduates at a time when the Chinese economy is struggling with cyclical and especially structural problems, the unemployment rate for 16- to 24-year-olds in China reached 17.1% in July 2024. This is the highest level since the Chinese government introduced an adjusted method for estimating the youth unemployment in December 2023. How serious is the problem of youth unemployment in China today and will the problem continue to worsen? What are the main reasons driving the development of the youth unemployment? How does the youth unemployment affect China’s economic development and social stability? Would China’s youth unemployment be a risk or an opportunity for foreign companies in China and for the world economy?