[The Epoch Times, August 26, 2024](Epoch Times reporter Yi Ru interviewed and reported) China’s economy has sharply declined after three years of epidemic control. Many private enterprises have shut down, and street shops are closing. Individuals who have fallen into the small middle class are now thrifty with their spending on food and clothing during travel, while those at the bottom struggle, crying out “bitter water soaks coptis.”
Small Middle Class Travels on a Budget
Mr. Yang from Fuzhou, Fujian Province, shared with The Epoch Times that after the end of the epidemic lockdown, the economy has not rebounded. Many middle-class people have lost their jobs or faced salary reductions. Additionally, they still have to pay off mortgages and car loans. As a result, many have become part of the small middle class. They used to enjoy traveling every year, but now they only go on trips to “check in.”
“Tourism is basically very dull. Domestic tourism is available, but some people only travel nearby, and there are hardly any options for trips outside these areas. I have never heard of anyone traveling abroad,” Mr. Tan from Fuzhou explained to The Epoch Times.
Mr. Liu, who operates in the Thai tourism industry, mentioned that most of the Chinese tourists visiting Thailand now come from the middle and lower classes. To attract more visitors to Thailand, some Chinese travel agencies are even offering luxury seven-day tours for just RMB 555.
Despite this, the number of tourist groups traveling to Thailand this summer has more than doubled compared to previous years. He noted that alongside the small number of tours, spending power has greatly diminished. “For instance, during the tour I took today, the tour guide’s voice was hoarse, and he didn’t even include popular activities like parasailing. Everyone seemed eager to participate,” he said.
Mr. Liu added that when Chinese people travel these days, they “sleep on the bus, take bathroom breaks upon disembarking, and only take pictures once they arrive at the scenic spots. They just want to visit the locations.”
Moreover, tourists are reluctant to purchase souvenirs. He mentioned that the temperature in Thailand exceeds 30 degrees Celsius, while the cement floors can be over 60 degrees. “You can jump when you step on it. Some Chinese tourists are unwilling to buy even a pair of slippers, even if they are wrapped in cloth.” (Further reading:Expert interpretation of the steep decline in consumption in China’s first-tier cities)
Street Shops are Closing
Mr. Liu noted that many of the Chinese tourists he encountered were freelancers. A small business owner from Wuhan told him that before the epidemic, his shop on Hanzheng Street could earn between 10,000 to 20,000 yuan a month, which was quite satisfactory. Now, he is not even able to make a profit; just maintaining the business is considered good.
“He also showed me a video he personally recorded and posted on Douyin, asking everyone to watch it. Our area was once a bustling commercial street. It used to be crowded with people, but now, basically, only a few shops can survive while the rest have closed down.”
From the video, Mr. Liu observed that most clothing stores were among the first to shut, as clothing is something people can choose to forgo. Some restaurants still manage to stay afloat because people still need food.
“That includes selling tourism products or small handicrafts, souvenirs, etc. If people aren’t interested in buying them, they simply won’t,” he said.
I also saw a video shared by Chinese netizens online. Hanzheng Street is indeed in a dire state now.”
Hanzheng Street in Wuhan, Hubei Province, is a famous distribution center for small commodities in Southeast Asia, hosting thousands of merchants. “It is similar to Yiwu’s small commodities market, and sometimes it was even more popular than Yiwu, but now it’s desolate,” he remarked.
Mr. Zhu from Guangzhou shares similar feelings. He told The Epoch Times that many street shops in Guangzhou have closed, and numerous commercial buildings are also shuttered. Even the more popular restaurants are attracting very few customers.
“I have visited Dongguan and Shenzhen, and many areas are sparsely populated. For example, there’s a Hunan restaurant near the Window of the World in Shenzhen, known for its cuisine. Years ago, it was always filled with patrons, with no space even for strollers. However, when I invited my friends there recently, very few customers were present. It’s like a ghost town,” he stated.
Mr. Wu from Guangzhou also reported to The Epoch Times that in mid-August, he drove back to his hometown of Ganzhou and was surprised at how few people were on the road. “Employment and business have significantly declined in my hometown. Many shops are expected to close in 2023 and 2024.”
He recalled that in mid-June this year, a snack bar owner in Shaxian County, Chengzhong Village, located in southern Guangzhou, told him, “After the National Day holiday in 2023, many people were missing, and those who left did not return. This year, during the National Day holiday, even more people were absent.”
Mr. Wu mentioned that in the middle of last year, a fast-food restaurant owner in an urban village of Baiyun District, Guangzhou, remarked that business after the lockdown was significantly tougher than during it. “At that time, compared to before the pandemic in 2019 and 2020, the number of foreign residents and businesses in the village had dropped by half.”
Mr. Tan from Fuzhou, Fujian, told The Epoch Times that in the first ten days of this month, he went shopping on the ten busiest streets of Fuzhou. “It used to be a very lively area with many people, but now almost all the stores are closed, and there is very little business left.” (Further reading:Physical stores are closing one after another, and mainland people are feeling the economic chill)
Mr. Tan noted that the situation in his county is even worse. “Basically, all the snack bars have closed down, and many supermarkets have shut their doors. The vegetable markets that used to be bustling now close by 8 or 9 o’clock, and I can’t even do business anymore. Life here feels like the Great Depression, not just a depression, but a severe one.”
People at the Bottom: “Soak Coptis in Bitter Water”
Mr. Tan from Fuzhou previously worked in construction. Now that the real estate industry is in a downturn, he has been unable to find work for over six months and has been staying at home.
“Many people cannot find jobs now. When they lie down, they save everything they can except for food. They don’t have the luxury to buy what they desire anymore.” For those who have not returned home, he stated, “they are suffering outside, and they won’t come back until they can’t survive anymore.”
Mr. Zhu from Guangzhou mentioned a girl he knows from Guangzhou who is in her forties and has faced severe difficulties, even going without food three times. “She had no income, and when she did find a job, it provided only meager earnings. A few days ago, she called me, and I could tell she was in insurmountable trouble. After several conversations, it became clear she was bedridden due to illness and lacked the money to go to a hospital. Moreover, she wasn’t in a condition to go alone. I was genuinely worried about her,” he shared.
Cuihua (pseudonym), a villager from southwestern Henan, told The Epoch Times that her family is considered a poor household in the area. She has two elderly patients and two elementary school children to care for. “Every day, I have to cook and wash clothes while caring for the two patients and two children who need food, drink, and medicine.”
Cuihua’s father is suffering from terminal lung cancer. Due to the high cost of surgery and the lack of reimbursement, he decided against hospital treatment. “In recent years, several elderly people in the area have also succumbed to terminal diseases without the funds for treatment. They have resorted to drinking pesticides or hanging themselves,” she lamented.
“It’s difficult as my mother has a gastric tube and is on a liquid diet. I have to blend food into a paste and inject it with a syringe five times a day and once at night.” Cuihua’s mother was once disabled and is now in a vegetative state. “I often help her with personal hygiene, and lately, she has developed bedsores. Even the medication provides little relief,” she added.
Cuihua’s husband works in a first-tier city. Being a skilled worker, he has a decent monthly income of several thousand dollars. “He returned home to help for a month but is now constantly requesting leave. He fears losing his job, so he returned to work so he can provide for us. If he loses his job, it will create significant problems for us,” she said.
Due to the hard labor day and night, Cuihua, in her early thirties, has developed gray hair and lost a lot of weight, but she attributes this to her misfortune. A few nights ago, she sent a message alongside a picture of Coptis chinensis, stating, “Boiled Coptis chinensis in bitter water.”
Mr. Zhu observed that people at the bottom of society currently see no hope for the future. ◇
Editor in charge: Gao Jing#
Recommended reading:
The Economic Struggles of China’s Middle Class and Beyond
Date: August 26, 2024. Source: The Epoch Times
China’s economy, once a beacon of growth, has faced a drastic downturn following three years of stringent epidemic control measures. The ramifications resonate deeply across various social strata, particularly impacting private enterprises, street vendors, and the fragility of the middle class.
Small Middle Class Travel on a Budget
The middle class traditionally enjoyed a lavish lifestyle, characterized by annual travels and luxury dining. However, this is swiftly changing. Mr. Yang from Fuzhou, Fujian Province, noted that the pandemic’s aftermath has left many in the middle class grappling with job losses and reduced incomes. With mortgages and car loans still looming, travel has become a mere “check-in” activity rather than a sought-after experience.
Domestic Tourism Trends
According to Mr. Tan, another resident of Fuzhou, domestic tourism is prevalent, but travel options have become limited. “People travel nearby; venturing offshore has become unheard of,” he states. Tour operators in Thailand are descending toward mass-market strategies, offering luxurious seven-day tours for an astonishing RMB 555. Despite this, Mr. Liu, a Thai tourism operator, admits that tourists’ spending capacity has diminished significantly.
- Tourism On a Shoestring: Travelers often opt for bare-bones experiences, skipping popular activities like parachuting.
- Frugality in Spending: With soaring temperatures, even affordable purchases like slippers are deemed extravagant by budget-conscious tourists.
Street Shops Closing Down
The retail landscape offers a stark contrast to the past’s vibrancy. Mr. Liu observed that many entrepreneurs, particularly freelancers and small business owners, have witnessed their enterprises devolve into mere survival tactics. He documented a grim video on Douyin, highlighting the once-bustling Hanzheng Street, now reduced to a shadow of its former self.
Commercial Activity Declines
As Mr. Liu explains, clothing stores were the first to shut down, demonstrating consumer reticence. Basic needs like food still spur minor restaurant operations; however, other commercial endeavors suffer immensely.
| Types of Businesses | Status Post-Pandemic |
|---|---|
| Clothing Stores | Primarily Closed |
| Restaurants | Struggling but Surviving |
| Street Vendors | Severely Affected |
Mr. Zhu from Guangzhou relayed similar sentiments regarding street closures, stating, “Guangzhou’s well-known districts are now ghost towns.” Despite the attempts by some establishments to maintain operations, the lack of foot traffic obliterates prospects for recovery.
Voices from the Bottom: “Soak Coptis in Bitter Water”
The desperation at the lower echelons of society intensifies daily. Mr. Tan, previously employed in construction, has been idle due to the real estate slump. His observations reveal that many residents are forced to curtail their already frugal lifestyles to the bare essentials.
Anecdotes of Struggle
Mr. Zhu shared the plight of a woman in her forties from Guangzhou who had faced chronic unemployment and insufficient funds for medical care. Meanwhile, Cuihua (a pseudonym) underscores the dire conditions in her impoverished village in Henan, where two sick family members and children rely on her dwindling resources.
- Cuihua’s Challenges: Balancing care for her terminally ill father while managing household duties exacerbates her family’s worry.
- Community Impact: Rising poverty has led to tragic incidences among families unable to afford treatment.
With the pain that accompanies watching loved ones suffer, Cuihua sends a poignant message encapsulated in the phrase, “Boiled Coptis chinensis in bitter water,” illustrating her vast emotional burden.
The Outlook for China’s Economy
As Mr. Zhu summarized, the vast majority at the bottom face bleak prospects. The once-flourishing economy is increasingly riddled with distrust and despair regarding future opportunities. The combined testimonies paint a picture of an economic landscape in critical need of revitalization.
Conclusion
As China navigates these choppy waters, the impacts of this downturn are felt across sectors. The plight of the middle class, street vendors, and the economically vulnerable highlights a society in transition, demanding urgent engagement from policymakers and society as a whole.
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