In a joint announcement made by three public transport companies in Lipu, Guangxi, it was declared that due to insufficient funds, they would cease all operations starting from September 29th. The reason cited was “long-term losses and inability to pay for insurance”. This news has sparked panic among the citizens. However, the local government quickly denied the suspension of services, stating that it was not reported in advance and has ordered the companies to rectify the situation.
Public transport companies in various parts of mainland China are facing closure crises due to operational difficulties. Recently, Lipu Tongda Urban and Rural Public Transport Co., Ltd. and two other public transport companies issued a joint notice stating the long-term inadequacy of operational funds. On one hand, declining passenger numbers and increasing operating costs have led to a sharp drop in revenue, while on the other hand, delayed financial subsidies have exacerbated the strain on cash flow, ultimately rendering the companies unable to cover necessary expenses such as vehicle insurance. As of the 29th, public transportation will be temporarily suspended.
The announcement also mentioned that during the suspension period, the companies will communicate with relevant departments to strive to raise funds and seek to resume operations as soon as possible. The resumption date will be notified separately.
On the 28th, an official from the Lipu City Transportation Management Department, in interviews with several official media outlets, stated that the suspension of public transport services must be reported three months in advance, and the sudden suspension by the three companies constitutes a violation, and the authorities have ordered the resumption of services. He emphasized that the government will uphold the normal order of public transportation in accordance with the law.
On the 29th, Wei Hao, a network writer from Guilin, Guangxi, revealed to a reporter from Da Ji Yuan that the announcement of the suspension of public transportation by the companies was not only due to losses but also to “pressure the authorities” to allocate funds. He said, “I heard from a friend that the Lipu City government has refused to further subsidize public transport companies that have been in long-term losses, with companies even cutting back on insurance and employee benefits. The suspension announcement is to force the city government to continue funding.”
Regarding the local financial situation, Wei Hao stated that the Lipu government itself is also facing serious financial pressures: “Not only is public transport not being subsidized, but the salaries of sanitation workers have also been overdue. Welfare was canceled several months ago, and grassroots workers are struggling to even guarantee basic wages.”
Several residents of Guilin and Lipu also told reporters that public transport is their main mode of transportation. However, with declining income and scarce job opportunities, people are already reducing their outings, and if public transport is suspended for an extended period, it will directly impact their lives.
A small business owner said, “The economy is really bad now, many shops are closing, and people don’t have money to spend. If public transport stops, our business will be even quieter.”
Another young person who is looking for a job said, “Many factories have closed down, and employment is becoming increasingly difficult. Now, even public transport cannot continue, it feels like the whole city is going downhill.”
On short video platforms, some citizens have posted job recruitment flyers, lamenting the inability to find suitable positions. Screenshots and discussions about the suspension of Lipu public transport quickly spread on WeChat Moments. Some scoffed, “If public transport can’t even support itself, what development can this city talk about?” Others bluntly stated, “The suspension is not the fault of the companies, but the government’s lack of funds.” There were also concerns that the grassroots financial crisis is manifesting through the collapse of public services, “Today it’s public transport, tomorrow it might be hospitals or schools.”
Analysts believe that this crisis reflects the vulnerability of public services in small and medium-sized cities during financial constraints. Once local land finances decline and tax revenues are insufficient, subsidies for public transportation will be reduced, and companies can only rely on ticket prices to sustain operations, eventually falling into a vicious cycle. When financial support is cut off, public transport companies resort to “suspension” as a way to pressure, becoming a kind of helpless choice.
In recent years, public transport enterprises in various parts of China have been struggling, facing wage arrears and suspensions. In July of this year, in many places, public transport companies resorted to “part-time delivery” services. A state-owned public transport company in Zhengzhou, Henan, attempted a model of carrying passengers during the day and delivering goods at night. Practices of combining public transport with express delivery have also emerged in cities such as Xi’an, Wuhan, and Chengdu.
According to media reports, in situations where financial subsidies are long overdue and passenger flow sharply declines, many local public transport services are forced to transport vegetables and agricultural products at night. Drivers have admitted that although their vehicles still bear the label “public transportation,” they have deviated from their original purpose: barely carrying passengers during the day and delivering vegetables at night.
Scholars point out that this highlights not only the financial strain on local governments but also underscores the high dependence of public transport on government subsidies. In situations of financial constraints, similar contradictions are likely to continue to emerge. They said, “Ultimately, it all comes down to a lack of money; these situations are actually the accumulated results of policy and institutional problems.”