Yan Dan: The Reasons Behind the Rising Price of China’s “Three Must-Haves for the Poor”

In recent news from within mainland China, an article talks about the rising prices of the “Poor Man’s Combo”, stating that the difficulty of “price increases to clear inventory” was not successful in the real estate market, but ended up happening with instant noodles, pickled vegetables, and cola.

Regarding the “price increase”, the article points out that Nongshim’s bucket noodles rose from 4.5 yuan to 5 yuan, while the bagged noodles went from 2.8 yuan to 3 yuan; Fu Ling pickled vegetables were remembered to cost 50 cents per pack, but now they are priced at 3 yuan per pack, and premium pickled vegetables can even sell for 5 yuan per pack; the price of a 500ml cola has increased from 4 yuan to 4.5 yuan, and a 680ml Coca-Cola now sells for 5 yuan. This “Poor Man’s Combo” adds up to around 13 yuan, reaching the “minimum for current dining consumption” in China.

Despite the price increases, sales figures have not decreased. According to the data provided in the article, in the first quarter of this year, sales of convenience noodles in China increased by 6.7% year-on-year and 8.7% month-on-month; Fu Ling pickled vegetables saw an increase of 3.93% in net profit attributable to shareholders in the first quarter; Coca-Cola reported a revenue of $11.3 billion in the first quarter, a 3% increase year-on-year. Since this “Poor Man’s Combo” relies on slim profit margins and high sales volume, a significant reduction in loyal customers could make it challenging for companies to achieve revenue growth.

In reality, whether more Chinese people are resorting to the “Poor Man’s Combo” can also be seen from the current sales strategies in the mainland’s catering industry. In March to late April this year, IKEA’s China stores offered a “Half Price Combo” on Fridays, such as 10 meatballs for only 9.99 yuan. Before that, “Nanchengxiang” introduced a “3 yuan self-service breakfast”; “Laoxiangji” offered a cheap combo for 14.9 yuan; “Naixue’s Tea” had a 9.9 yuan European bread and milk tea combo; even “Starbucks” introduced a snack and drink combo for less than 20 yuan.

In a video captured, a big shot in the catering industry in mainland China stated during a gathering with peers that now in China, one must focus on the lowest-end consumption in the food industry. He noted that before the Chinese New Year in 2023, lunch boxes at a construction site in Guangdong were priced between 12 to 15 yuan, but by May, the price had dropped to 8 yuan, and now they can only sell them for 5 yuan. In Beijing, convenience stores are selling lunch boxes for 4 yuan, and their business is better than other stores. In this situation, it seems that Chinese consumer spending has regressed to the level of 2006, leading him to consider opening a hot pot restaurant with a per capita consumption of only 40 yuan with friends in the next step.

These signs indicate that more Chinese people who were not living in poverty before are increasingly being classified as “poor souls”. Now, the catering industry is being forced to react, yet the government, which should bear heavy responsibilities for the “dining table” and “food basket” of the common people, has not provided any substantial assistance, and is even searching for ways to extort and target the “poor souls” precisely and mercilessly.

By preying even on the “poor souls”, it is evident that the Chinese Communist Party (CCP) is also running out of funds. A year ago, someone criticized the central government on social media outside the wall, revealing the harsh reality that “China, from the government to the people, is impoverished to the point of ringing the bell, and Xi Jinping relies on squeezing money from the rich people listed on the Hurun Rich List to survive.” It’s not hard to hear from these words that the concept of “common prosperity” may have been somewhat feasible a few years ago.

However, a recent article from overseas “People’s Daily” pointed out that in the “2023 Global Wealth Migration Report,” data indicated that in 2022, over 10,000 Chinese millionaires immigrated abroad, ranking first globally in millionaire migration; in 2023, the number of high net worth individuals from China is expected to top the global list, with an estimated 13,500 wealthy individuals relocating overseas, leading significantly.

With so many wealthy individuals leaving with their money, the CCP must be feeling desperate. Data shows that since the beginning of the epidemic, hundreds of billions of US dollars have been transferred out of the mainland each year. Even those who haven’t left are finding ways to move their money out. There are reports that many Chinese are buying apartments in Tokyo worth more than 3 million US dollars “box by box” with cash. In reality, this method is just one of many tactics used for asset transfer.

It is clear how ruthless the CCP’s “wealth confiscation” is, as it has prompted China’s rich to swiftly and decisively scatter. However, the CCP’s unsightly behavior fully exposes its desperate state of hunger.

Over the past two years, there have been countless reports of salary cuts, layoffs, delayed wages, and unit demands for previously paid bonuses for individuals within the mainland system, reflecting the dire financial situation. At the same time, the CCP is increasing the printing of currency, even changing the anchor of the renminbi to national debt. Soon enough, the CCP issued 1 trillion yuan in national debt, hoping that local governments would use this to alleviate financial pressure. However, when even the anchor is not valued, the renminbi loses its worth. In this scenario, Chinese people are forced to use depreciating money to buy the “Poor Man’s Combo,” which is still getting more expensive. At this rate, they might not even be able to afford the most inexpensive option.

While it is the convenience noodle, pickled vegetable, and cola companies that are raising prices, the one tightening their grip behind the scenes and demanding a portion of their profits is none other than the CCP – the chief of this gang of robbers and bandits that combines the party, government, and military and stands above the law. The problem is, successful robbery occurs when there is something to rob. But if Chinese people can’t even afford the lowest-priced combo, how can they be robbed when they have no money!

In 2022, a study suggested that the mainland’s healthcare system’s surplus of 3.6 trillion yuan, even if used solely on universal nucleic acid testing every two days, would be exhausted in just three and a half years. This indicates that we must not underestimate the extent and speed of corruption by the parasites within the CCP. This regime that has never stopped using its power for personal gain will quickly deplete all the hard-earned money of the Chinese people!

The collapse of the CCP is inevitable because it lacks a mechanism for self-preservation. From the beginning, it embarked on a path of destruction for itself and others. However, before the CCP collapses, how many Chinese people will become tragic figures and sacrifices of this era, afraid, unable, or unwilling to resist?