【Epoch Times, August 28, 2024】Beijing’s renowned Ding Tai Fung announced on the 26th that it will be closing 14 stores in northern China. Xie Jinhe, Chairman of Taiwan’s Cai Xing Media, pointed out that the root cause of this decision is that Chinese people are tightening their belts due to economic conditions.
Ding Tai Fung has been in the mainland China market for nearly 20 years and on the 26th, it made a significant announcement regarding its 14 stores in Beijing, Tianjin, and other locations, which will gradually withdraw from the northern markets by the end of October. The closed stores include Fishery Yang store, SKP store, Xidan store, Fangcaodi store, APM store, Guomao store, Cuiwei Department Store, Century Jin Yuan store in Beijing; Henglong store, Wanda Plaza store in Tianjin; Jiaen Carnival, HISENSE Plaza VILLAGE store, HISENSE Plaza store in Qingdao; SKP store in Xi’an; and Panji store in Xiamen.
Xie Jinhe posted on Facebook “The Tears of Ding Tai Fung,” mentioning that the closure of 14 stores in the northern region of China, primarily in Beijing, is surprising for those in Taiwan who often have to wait in long lines to dine at Ding Tai Fung. The direct reason for this decision, as Xie Jinhe highlighted, is that Chinese people are dealing with financial constraints.
According to Xie Jinhe, in July of this year, the Chinese National Bureau of Statistics released two sets of data. One being that the scale of new credit reached a new low since 2008, with the balance of personal loans decreasing for the first time, and the scale of corporate loans being at the lowest level since 2017. The other data showed a slowdown in the growth rate of total social retail sales to 3.7%, with negative growth in cities like Beijing, Shanghai, Tianjin, and Hainan. Beijing experienced a 9.4% decline month-on-month, Guangzhou a 9.3% decline, Shanghai a 6.3% decline, and Shenzhen a 2.2% decline, indicating a collective economic slowdown in these major cities.
In response to Ding Tai Fung’s decision to close its 14 stores in northern China, Taiwanese Premier Zhuo Rongtai, in an interview with the host of the News Observatory on FTV, Hu Wanling, on the 27th, expressed that Ding Tai Fung is a high-quality and service-oriented dining brand. He mentioned that the economic situation when they first entered mainland China is vastly different from the current scenario, which reflects changes in the Chinese economy.
Zhuo Rongtai pointed out that China has been in a difficult situation since the pandemic. The Chinese regime must salvage the economy domestically while also showing strength externally, creating conflicting approaches in national development. He emphasized that if the Chinese Communist regime fails to recognize this, and continues on this path, it is hard to predict an economic upturn. Despite this, the U.S.-China trade war and technological competition continue. Zhuo Rongtai also highlighted that China’s military expansion activities pose a threat to the Indo-Pacific region, Asia, and the global community, if not met with global condemnation.
Xie Jinhe mentioned that China’s vast market with a population of 1.4 billion is facing comprehensive internal pressures, largely stemming from the overheating of the real estate market. With Ding Tai Fung’s withdrawal, other Taiwanese food businesses may also face challenges. The future of Taiwanese brand “85 degrees C” is something to keep an eye on.
Moreover, Xie Jinhe noted recent reports from Hong Kong’s media. Since the pandemic, local retail businesses in Hong Kong, such as jewelers Chow Tai Fook, Chow Sang Sang, and Lee Cheuk Shun, have been struggling. Retail giants like YONGHUI Superstores and Lianhua Supermarket have seen their stocks plummet. Taiwanese-funded company Haidilao, known for hotpot, saw its stock drop from HK$27.15 to HK$0.9, while another giant like Want Want, Master Kong, and Gao Xin Retail are also facing hardships.
Xie Jinhe added that in recent years, Hong Kong’s film and television industry has been declining. The once iconic Hong Kong dramas and movies now remain only in memories. TVB’s stock price hit a low of HK$2.65, and its market value dropped from HK$37 billion to HK$11.8 billion, marking another tearful chapter in the era.