Amid the current economic downturn in China, the daily life pressures on ordinary people are intensifying. Credit cards being frozen, unemployment, salary cuts – no one is spared from retired individuals in Yunnan to working-class individuals across the country. People interviewed by Epoch Times reflected on phenomena such as loan defaults, shrinking paychecks, relying on odd jobs to make ends meet, and a surge in the unemployed living with their parents, all contributing to a sense of uncertainty about the future.
One resident from Yuxi City, Yunnan Province, using the alias Feng Lan, shared with reporters the plight of her friend who encountered difficulties due to overdue credit card payments. The friend, a retiree, had her credit card frozen recently because the credit limit was reduced by Ping An Bank, followed by several other banks. This led to a significant increase in her debt, ultimately resulting in her account being frozen. Feng Lan mentioned, “The pressure was immense. About three weeks ago, her credit card, WeChat Pay, and other accounts were all frozen, and now she’s at her wit’s end.”
Feng Lan also mentioned that such scenarios are common locally, with many overdue credit card cases being handed over to debt collection agencies, which aggressively push debtors for repayment. She expressed that even though her friend has children in college, no one was willing to negotiate a solution, and after the account freeze, cash became their only emergency option. However, delays in resolving the matter due to court and law firm excuses have left them distressed. “I’ve spent the past few weeks running around, assisting her with consultations on these issues.”
A resident of Changsha, Hunan Province, named Wang Feng, voiced the grim economic situation, noting that many people with loans are choosing not to repay them as they have no jobs. He said, “Once you lose trust, you lose it. Anyway, there’s no job. Being untrustworthy is better than starving. If you can’t earn money, you can’t survive.”
Wang Feng observed a high unemployment rate, with many people unable to find work, resorting to temporary jobs where some leave after just a couple of days. He noted that based on his sources, public servants and employees of state-owned enterprises are facing significant salary cuts. Layoffs and pay cuts are common, pushing wages down to a level where working barely sustains livelihoods.
According to public reports and research, the rising unemployment rate and economic pressures in China have had profound impacts on individuals and families. Many businesses struggling have led to frequent occurrences of salary cuts and layoffs. These economic pressures have made it difficult for some individuals to repay loans on time, resulting in them becoming debt defaulters. According to data from China’s Public Execution Information Disclosure Network, the number of debt defaulters has been steadily increasing in recent years, reflecting the impact of the economic downturn on personal credit.
Furthermore, the rise of the gig economy reflects people seeking flexible employment opportunities as formal job prospects dwindle. However, these gigs often lack stability and security, failing to provide long-term economic stability.
A resident of Zhoukou, Henan Province, Mr. Li, told Epoch Times that he couldn’t find work elsewhere and had to return to his hometown. All the land in his hometown had been taken away, leaving him with no option but to take odd jobs. If he earned a hundred yuan in a day, he could afford some rice; if not, he had to endure hardships. “I can’t afford vegetables now, only eating rice, and plain rice porridge.”
As one of China’s major coal-producing provinces, Shanxi has long relied on the coal industry to support its local economy, particularly in places like Linfen, where state-owned coal enterprises were the main source of employment and financial income. However, in recent years, with the policy of “cutting overcapacity” promoted by the Communist Party, along with the gradual implementation of “peak carbon emissions and carbon neutrality” goals, the coal industry is facing structural contraction. This has not only affected small and medium-sized enterprises but also led to unexpected salary cuts and layoffs at some state-owned enterprises, directly impacting older employees unable to switch roles.
A resident of Linfen, Shanxi Province, using the alias Liu Yan, stated that the entire industry was in a slump. She worked at a state-owned coal enterprise where salaries were drastically reduced starting from February this year, with older employees experiencing a monthly salary cut of several thousand yuan. The unit offered an option: employees could voluntarily apply for resignation and receive a few thousand yuan monthly temporarily, claiming to preserve seniority. However, she mentioned that quitting meant losing the position permanently with no prospects of return.
A woman from Tonghua, Jilin Province, expressed that the current economy is very bleak, with restaurants deserted and numerous stores on the streets shut down. “Just take a stroll around the city, and you will see that most stores are closed and deserted. This has been the situation for the past two to three years.”
She lamented that money is hard to come by now, with many factories transitioning from monthly salaries to piece-rate payments, frequently giving employees time off. Many young people have left the area, with some becoming financially reliant on their parents. She observed that food delivery workers are quite common in the area now.