Before the Fourth Plenary Session of the Communist Party of China (CPC), official articles were promoting the economy, but the public was suffering greatly. After the National Day holiday, many employees returned to work only to find their bosses had disappeared, leaving them jobless.
In Guizhou, on October 8th, an employee named Chunming (pseudonym) from a mold company told the Epoch Times reporter that after the holiday, they found the factory had shut down. Over twenty employees were owed a total of five to six hundred thousand yuan in wages by the employer.
“The boss said he wanted to move the equipment to Cambodia, promising to pay our wages, but without any compensation. The boss didn’t inform us in advance; it was a sudden closure, and we haven’t seen him since then.”
Chunming explained that the factory processed orders from Cambodia. In the beginning of the year, the business was doing well, but later on, it deteriorated. Domestic orders decreased, and sustaining operations domestically became unfeasible, leading to the decision to relocate to Cambodia.
He had been working there for a year and a half. “It’s hard to find a job now, especially in our sector of mold manufacturing.”
On October 8th, a blogger commented that a large number of factory owners took advantage of the long holiday to close down and disappear. Employees finally got some time off for the holiday, came back to find the factories gone. It’s absurd! The owners owe suppliers and employees wages. They cleared out the equipment and ran away, leaving others in distress.
In the past three years, China’s economy has been in a downturn, with many industries in decline. Recently, the wave of closures of enterprises in Guangdong, an economic powerhouse, serves as a microcosm of the country’s economic decline.
Guangdong’s “Emar Automotive Industry,” based in Dongguan for 11 years, announced a halt in production on October 1. Established in 1999, “Emar Technology,” headquartered in Tianjin, is an integrated traffic vehicle manufacturer involved in research, production, and sales.
Jiamaiai Furniture Company in Houjie, Dongguan, was recently declared bankrupt by the court. Formerly a leading furniture manufacturer in Dongguan, the company, with a registered capital of ten million yuan, now only has assets worth 62,000 yuan and debts amounting to 12.38 million yuan.
Famous door and window manufacturer Wutongshu Doors and Windows Company in Foshan, Guangdong, officially announced its closure on October 7. Two months before the bankruptcy declaration of Wutongshu Aluminum Doors and Windows Factory, they confidently claimed strong financial backing and even planned to acquire Weiya Doors and Windows.
During the “Eleven” holiday period, many businesses were seen selling off office equipment online. A blogger in Houjie, Dongguan, mentioned that due to severe losses, e-commerce companies were closing down. In Huizhou, companies shut down and were clearing their office equipment at discounted prices.
The CPC will hold the Fourth Plenary Session from October 20th to 23rd. During the “Eleven” holiday period, the CPC’s “People’s Daily” published eight articles discussing the Chinese economy under the guidance of “Xi Jinping Economic Thought.”
In a commentary on October 2nd, the party media acknowledged that China’s economy faces numerous risks and challenges, such as the operational difficulties of some enterprises and pronounced fiscal imbalances in certain regions. However, it argued that one cannot deny the overall economic situation just because some entities are not faring well.
Economics Professor Xie Tian from the University of South Carolina’s Aiken School of Business, in an interview with the Epoch Times, noted that for many citizens, their own personal experiences are the most direct observations of the economy. The CPC’s approach is to mislead the public and paint a rosy picture, but it indirectly signifies the increasingly severe state of the Chinese economy.
On October 9th, a tobacco vendor in Wuhan, Hubei, told the Epoch Times reporter that their industry has completely collapsed. Premium brands were unsold, mid-range brands broke even at best, and prices of popular brands like “Huanghelou” dropped from 350 to 300 yuan. With only low-end brands generating sales and limited supply, the sector is not profitable anymore.
An e-commerce entrepreneur in Zhejiang who sells bamboo fences online mentioned to the Epoch Times, “This year’s e-commerce is extremely challenging, with over a 50% decrease compared to last year. I’ve been in this business for five years, operating with self-produced goods. The current economic downturn makes e-commerce extremely difficult, almost to the point of madness.”
Electric bicycle stores in Guangzhou are also facing closures. On October 8th, a store owner doing electric bicycle business in Guangzhou shared that from October 3rd to 8th, they only sold three used bicycles; not a single new one was sold. Several stores in the Tianhe district have begun to close. With over a decade in the business, the owner is unsure if they can continue at this rate.
A woman still employed in Wuxi, Jiangsu, expressed, “Finding work is really tough now. I’ve tried several jobs, but every employer I’ve encountered has debts worth millions. I haven’t even received my 4000 yuan salary from last month, and then a few days ago, the boss asked to borrow 2000 yuan from me. I might end up unemployed now.”
An unemployed man in Zunyi, Guizhou, also shared his struggles, citing the harsh employment situation in the region as extremely daunting.
Professor Xie Tian mentioned that individuals’ personal experiences cannot fully explain the entire economy, but when combined, they reflect the state of economic decline. Due to intentional deception and systemic falsification by the Chinese government, the public cannot trust official economic data. The authorities also suppress scholars who try to expose the truth, fostering an environment of information opacity.
Overseas platforms have seen netizens mock the CPC’s argument, “You can’t deny the overall economic situation just because some entities are not faring well.” Some responses include: “You can’t deny the overall economic situation just because 99% of entities are losing money” and “Don’t deny hunger just because your stomach isn’t full.” The public sentiment is questioning the credibility of the self-promoting series of articles by the CPC’s Central Financial and Economic Affairs Commission, headed by Xi Jinping, which has led to widespread skepticism among netizens.