In the eyes of an elderly resident in Linyi, unfinished real estate projects, closed businesses, and deserted wholesale markets all reflect the economic downturn in various aspects. As a prefecture-level city, Linyi’s situation is just a microcosm of the national economic decline.
Linyi City is a prefecture-level city under the jurisdiction of Shandong Province. Mr. Wang, a local resident and observer, recently told a reporter that the local subsidiary of Country Garden is facing bankruptcy. Employees were laid off without receiving their wages and were compensated with company’s fixed assets such as desktop computers and laptops, where each item amounted to 2,200 to 3,800 yuan. Some employees were eager to get rid of the computers in their hands.
Since January 2024, Country Garden has encountered multiple cases of failure to deliver completed construction projects. Properties such as Country Garden Phoenix One, Country Garden Sundance Phase III (delayed for nearly two years), Country Garden Lulan Court, and Country Garden Bund, these major high-end developments in new districts or county areas have left homeowners burdened with heavy mortgages and unable to occupy their incomplete homes, leaving many in tears of bitterness.
Another homeowner confirmed to the reporter that her property in Phoenix One was left unfinished and has not been delivered, overdue for two years. Homeowners are seeking ways to protect their rights.
A search on the national enterprise bankruptcy information network shows no record of the bankruptcy of Country Garden’s subsidiary in Linyi. However, announcements indicate that in July of this year, the subsidiary in Suzhou was declared bankrupt due to arrears in project payments;
In December 2024, the Pujiang County Court in Zhejiang ruled the bankruptcy of Pujiang Country Garden Real Estate Development Co., Ltd.; in November 2024, the Jianghua Country Gardens DeFeng Real Estate Development Co., Ltd. in Yongzhou, Hunan, underwent bankruptcy liquidation.
Information from Qichacha shows that Linyi Country Garden Real Estate Development Co., Ltd. was established on July 30, 2018, and the current operating status of the company is in operation. Since July 2025, it has been listed as the subject of enforcement actions multiple times, with high risks associated with itself and related entities, having 45 court notices.
In April of this year, the owners of the Country Garden City Investment Emerald Bund project were notified that the inspection and delivery time for Phase I of the properties is September 30, 2025, with full completion by March 31, 2026, while Phase II is postponed to March 2027. Owners can choose between “cash compensation” or “fulfilling precise decoration as per contract.”
In recent years, delayed construction projects and unfinished developments by Country Garden in Linyi have sparked protests among homebuyers. At the end of August 2024, a 34-year-old single mother with two daughters moved into an unfinished building, attracting attention on social media. The property management even cut off water and electricity, urging them to leave. “The (Country Garden) developer repeatedly promised delivery dates, only to break them time after time,” the single mother said.
Apart from numerous unfinished residential buildings, Mr. Wang noted that the market for pre-owned small properties in the downtown area, with an average price of 400,000 to 800,000 yuan between 2019 and 2022, has now halved in value. The market for properties in Beicheng New District, with an average price of over 10,000 yuan per square meter, is sluggish, with a lack of market demand. The situation of commercial properties on the streets is worse than last year, with more closures or transfers of old stores, with several old stores that have been operating for decades relocating to other areas.
After the alcohol restriction policies were implemented, many star-rated hotels and inns in the area are trying to survive. Well-known establishments like Ronghua Grand Hotel (a four-star hotel affiliated with Shandong Province Tobacco Monopoly Bureau), Taoranju Grand Hotel (also four-star), Hedong Jinjiang International Hotel (a five-star hotel), Lanhai Grand Hotel, Linyi Hotel, Jiuzhou Gourmet Garden, and Yizhou Hotel have resorted to setting up roadside stalls to sell ready-to-eat foods, noodles (such as steamed buns, fried bread, large buns), cooked dishes, fried foods, and even boxed meals.
“LinYi Hotel has gone a step further, not limiting their stalls to their establishments but directly radiating into nearby affluent neighborhoods within a few kilometers, using mobile food carts to sell noodles, and ready-to-eat foods. Other major hotels and inns have followed suit.”
“With this trend, it will become even harder for regular restaurants and fast-food vendors to survive, as these large hotels and inns are taking away their business, leading to more closures of street-side eateries. The main city streets are now filled with closed or transferred properties, with many stores remaining vacant for over half a year,” he said.
Due to the poor economic conditions, the operation methods of clothing stores have also changed. Retail fashion stores now only stock seasonal clothing merchandise, closing shop once the items are sold out, preferring to keep limited inventory on hand. Mr. Wang analyzed that this change is likely a result of upstream factories not extending credit, where stores only procure goods based on demand and stop restocking once items are sold.
As street-side eateries are closing at an accelerating rate, the business in wholesale markets has also been greatly affected. Apart from slightly better sales in seafood frozen products, even the sales of food additives have taken a significant hit. Merchants in other types of wholesale markets are experiencing a downturn in business, with fewer freight trucks in the market, and the bustling traffic on major roads seen in previous years has disappeared.
The wholesale market for ceramic utensils is also quiet, with high activity expected in November and December, mainly catering to the hotel and catering industry.
Starting from September 1, the Chinese Communist Party has enforced mandatory social security contributions for enterprises. Some hotels have responded by laying off young front desk staff and hiring those over 50 to avoid dealing with front office duties. There’s a dark joke circulating online, stating that after the mandatory social security contributions were introduced, companies encourage employees to become partners, shifting from standard salaries to profit-sharing, thereby eliminating the need for paying social security contributions.
“This means that those over 50 are now valued more, leaving the young ones struggling. With slim profit margins, and the added pressure of mandatory social security, enterprises are reluctant to bear this burden, opting to navigate the situation through unconventional means,” Mr. Wang said.
“However, there seems to have been a rise in street-side fortune-telling and palm-reading stalls in recent years. The youth are frequent visitors, seeking guidance on wealth, career, and relationships… The common people now feel anxious, tired, cutting down on expenses, reminiscing about better times,” he added.
Mr. Wang also noticed that the local sanitation group has not paid salaries for two months. The number of roadside garbage bins has decreased, potentially linked to staff and equipment reduction. Previously, larger vehicles were used for garbage collection, but now three-wheeled electric garbage trucks are employed to transport waste, and businesses are instructed to bring their garbage to the roadside at scheduled times. Considering the wave of closures and transfers among downtown shops, the change in garbage levels also reflects the city’s operational situation. In 2022, the city produced 100,000 tons of garbage daily.
Mr. Wang believes that alterations in garbage levels can indicate the city’s operational status and reflect the economic downturn.
A resident from Shanghai, Ms. Ding, also told the reporter that with the economic downturn, the situation is the same nationwide. Properties that have ceased supply have become subjects of foreclosure. Homebuyers who purchased at the peak have already lost 20,000 yuan per square meter, translating to a loss of one million yuan for a 50-square-meter property. The population has decreased, malls are emptier, and many industries are no longer thriving.
“Young people under 35 are finding it hard to secure employment. When the economy was good, companies would lay off a few employees, but now it’s a mass layoff, regardless of age or capability, targeting older employees with higher salaries. Previously, companies provided annual leave, which has now been cut. If you have something urgent, you can only take half a day off, with extended holidays during the Chinese New Year. Bonuses have disappeared, and employers are now making social security contributions based on the lowest payment bracket. When the economy is not doing well, everything goes downhill,” she explained.
Mr. Wang also observed that the mental health of the younger generation is concerning. Many boys have formed gangs and often engage in reckless driving, while many girls have taken up smoking and adopted a makeup style resembling fox spirits. This group is referred to as “spiritual dudes” and “spiritual girls,” commonly sporting tattoos, with some even covering a whole leg or arm, causing alarm among observers.
Mr. Wang expressed worry that the poor economy and societal decline are negatively affecting the mental state of these minors or young adults. Under the influence of years of negative education in schools, these individuals lack guidance and restraint, grappling with spiritual emptiness. Given the tumultuous times ahead, convincing education to instill rational understanding is crucial to prevent destructive behaviors.