Fake Work Company Emerges, Analysis: CCP Social Security System Imperfect

With the economic downturn and soaring unemployment rates in mainland China, cities like Beijing, Chongqing, Shenzhen, and Harbin have seen the rise of “pretend-to-work companies.” According to scholars, this phenomenon indicates widespread unemployment, with many people unable to find jobs. It also highlights the inadequacies of China’s social security system.

These so-called “pretend-to-work companies” charge a certain fee each day to provide users with workstations, internet access, and basic office facilities like tea, creating a simulated work environment.

Mainland media have reported on the phenomenon of “pretend-to-work companies.” For example, Zhu Guanlin, who used to work in a state-owned enterprise, resigned in March and invested hundreds of thousands of yuan to establish a 280-square-meter office space with 30 workstations in Beijing Yizhuang in May, offering facilities like meeting rooms, lounges, snack areas, reception rooms, and livestreaming rooms for a daily fee of 49.9 yuan per person.

On May 18, 2025, Liu Guanjie’s “pretend-to-work company” opened for business in an office building in Longhua Qinghu, Shenzhen, with nearly 20 workstations, nearly fully occupied every day. Liu, a former freelancer who frequented libraries and cafes in Shenzhen, identified the demand in this industry and founded his “pretend-to-work” company.

Liu Guanjie stated in his recruitment information, “If you are currently in a job gap but want to maintain a work-like daily routine, here you can have a ‘pretend-to-work’ workstation for only 30 yuan a day. Here, you can read, study, submit resumes, interview remotely, sleep, slack off, play with your phone, and more.”

Mr. Dong from Jinan, Shandong, told the Epoch Times, “Chinese people care a lot about their reputation and are afraid of losing their jobs and being looked down upon. They also worry about their families’ ability to bear it, so they endure and uphold their dignity. But this is not a long-term solution. If they cannot bring money home by the end of the month, how will they explain it to their families? Besides, they have to pay every day. Life for Chinese people is just too exhausting.”

Professor Li Yuanhua from the former Capital Normal University, interviewed by the Epoch Times on June 22, said, “The emergence of ‘pretend-to-work companies’ indicates that the overall economic environment under the Chinese Communist Party is very poor. Many people are unemployed and have no jobs to go to, but in order to maintain their dignity or the semblance of a job, they would rather spend money to go to these so-called companies every day, early in the morning and late at night. This is actually a very abnormal phenomenon that should not exist in a normal society.”

“If the country provides more reemployment training or social guidance to give more people the opportunity to re-enter the workforce, these people would not be in a dead-end situation where they would rather spend money to simulate a work environment. This phenomenon is a result of China’s overall economic downturn, inadequate social security system, and the society’s lack of consideration for individual circumstances,” Li Yuanhua said.

The youth unemployment rate in China remains high. As early as 2013, research by Zhang Dandan, an associate professor of economics at Peking University, indicated that the actual youth unemployment rate in China could reach as high as 46.5%. This year, the number of college graduates in China reached a record 12.22 million, while the US-China trade war will lead to the closure of many Chinese factories, further increasing unemployment rates.

Mr. Dong noted that “China is facing a serious unemployment crisis, with people over the age of 35 unable to find jobs, and even college graduates struggling to secure employment, resorting to working as online car-hailing drivers and food delivery personnel. Now, no industry is doing well, and many businesses are closing down. If people don’t have loans, just having enough to eat is considered comparatively good. Most people have car loans and mortgage repayments to make. Once they lose their jobs, the pressure becomes overwhelming. Even if they sell their houses to repay debts, due to falling property prices, they still owe hundreds of thousands of yuan to the bank. Many people see no future.”