In recent days, hundreds of merchants from the resettlement area of Fenghuang Lake New District in Fengtai County, Huainan City, Anhui Province, have gathered at the county government to protest against the significant increase in shop rents, adding further hardship to their already struggling businesses.
Since April 14th, hundreds of merchants from the resettlement area have held protests at the county government for four consecutive times, with as many as one to two hundred participants each time. The local government dispatched special police to the scene to maintain stability and intimidate the protesters.
One of the merchants, Ms. Fang Yan (pseudonym), told reporters that they have repeatedly brought their grievances to the county government but have not received any resolution. When the merchants posted videos of their protests online, they were later threatened by the police to delete the posts.
Fang Yan expressed that at present, their only hope lies in the arrival of the central inspection team in Anhui. She hoped that the local government would be more cautious and perhaps consider reducing the rent. Due to the threats from the police, they are now afraid to continue their collective protests.
The Fenghuang Lake New District was planned in 2010 as a resettlement area for villagers affected by coal mining subsidence, covering an area of 6 square kilometers and capable of accommodating 80,000 residents. It has been promoted by the authorities as a first-class provincial-level demonstration resettlement area.
Fang Yan revealed that her residential area has more than 1,400 households, and she runs a tobacco and liquor business in the area. The local government auctioned off the shops, with a company named Huifan winning the bid. After taking over, the company significantly raised the rent, leading to discontent among the merchants.
“For example, this property used to rent at 5 yuan per square meter, now they’ve tripled it to 15 yuan per square meter. My shop used to rent at 10 yuan per square meter, now it’s increased to 20 yuan per square meter. Some locations have increased to over 30 yuan, even 38 yuan, which is too much. We all disagree,” Fang Yan explained.
She mentioned that a few years ago, a 1 yuan increase per square meter was within an acceptable range for the merchants. However, with the current poor national economic situation, even a 1 yuan increase in rent would be unbearable for the merchants.
“Now, cigarettes priced above 20 yuan hardly sell, we only sell cheap cigarettes, the good ones don’t sell at all, they’re just sitting in the shop,” Fang Yan added.
She further disclosed that since last year, the sales have been gradually declining. Previously, daily sales could reach over 2,000 yuan, but now it is only over 1,000 yuan, sometimes less than 1,000 yuan, and sometimes the weekly sales cannot even cover the cost of cigarettes.
Fang Yan also mentioned that the merchants all believe that the company that won the bid must have a connection with the government because it was the county government’s bidding process. In today’s society, companies without connections and background would not win bids. The merchants feel helpless and can only wait for the county government to issue an order to reduce the prices.
Efforts to contact the Fengtai County Government by phone were unsuccessful.