The official Chinese Communist Party has always used false data and reports to cover up the poor economic situation. Despite the claims by the CCP that Shanghai’s economy has grown, the “perceived economy” of the people reflects a huge gap between the official narrative and reality.
According to official data, in the first quarter of 2025, Shanghai achieved a 5.1% increase in Gross Domestic Product (GDP), which is 0.1 percentage points higher than the annual growth rate in 2024.
However, there is a significant disparity between official data and the feelings of the general public. Recently, a noodle shop owner in Shanghai, known as “Achang,” shared his firsthand experience of the “perceived economy” on social media. He mentioned that while the officials claim economic growth, the common people feel differently – especially those at the bottom, who struggle to make ends meet in their businesses.
“Achang” described how Shanghai’s population has visibly decreased, with reduced foot traffic in subways and downtown areas. Many previously busy streets now see significantly fewer people. Office buildings in the city center have high vacancy rates, especially in commercial office spaces.
The latest Shanghai Statistical Yearbook for 2024 revealed a sharp drop in the total resident population to 24.8026 million, with a decrease of 72,000 people compared to the previous year. The decline in the number of permanent residents, particularly among migrants, fell below 10 million for the first time, reaching 9.8349 million, marking a decrease of 230,000 residents.
“Achang” attributes the decrease in foot traffic to people leaving the city. Between 2018 and 2019, the demolition of “illegal” buildings in Shanghai led to the disappearance of vibrant neighborhoods and small factories, causing a significant outflow of migrant workers.
The declining population has worsened the rental market, with many apartments sitting vacant as reported by Achang’s colleagues who struggle to find renters.
On April 15, the Shanghai Social Survey Research Center and the Center for Applied Statistics Research at Shanghai University of Finance and Economics released various economic indices for the first quarter of 2025, showing an increase in consumer confidence but also reflecting a complicated economic situation.
Blogger “Shanghairen” notes that while the official narrative says China’s economy is stable with signs of improvement, there are contradictory signals about preparing for tough times, indicating that the economy may not have actually improved.
“Shanghairen”, once considered part of the middle class in Shanghai, shared his personal experience of nearly bankruptcy due to property investments before the Covid-19 pandemic and being led astray by optimistic reports thereafter.
The pandemic severely impacted the restaurant industry, with businesses struggling to maintain operations post-lockdown. Many eateries have seen a decline in business, leading to challenges in staying afloat.
“Achang” highlighted the impact of online food delivery, which has significantly affected physical dining establishments, with platforms cutting into profits and making it challenging for brick-and-mortar stores to compete.
In conclusion, Achang summarized the current state of the restaurant industry, with eight out of ten establishments barely able to sustain themselves amidst the challenging economic conditions.