Amid the economic downturn, the US-China trade war, and the lingering effects of the pandemic, the income and livelihoods of ordinary residents in Beijing are facing significant challenges. The low salaries in the service industry, the instability in the sales sector, pay cuts for civil servants, and a shrinking job market are highlighting a noticeable decrease in consumer purchasing power.
At the same time, in the lead up to the upcoming grand military parade by the Chinese Communist Party, Beijing has unprecedentedly intensified its stability maintenance efforts, tightening social controls, reflecting the complexity of the capital’s economic and social situation. Through insights from seasoned real estate agents and local residents in Beijing, this article sheds light on the current state of affairs.
On July 1st, Ah Fang, a senior real estate agent in Haidian District, Beijing, revealed the current income status across various industries in Beijing through social media platforms, exposing the survival pressures faced by ordinary people under high living costs.
She pointed out that incomes in the service industry are generally low: delivery and takeaway drivers earn around 6,000 to 7,000 yuan per month, taxi drivers about 7,000 to 8,000 yuan, residential cleaning staff about 2,500 yuan, security guards about 3,000 yuan, and cashiers and restaurant servers around 3,000 to 4,000 yuan, while office clerks earn approximately 4,500 yuan.
The sales industry poses more risks due to the unstable income. Ah Fang mentioned that professions like real estate agents, car salespersons, and insurance agents often do not have a fixed salary, leading to significant income fluctuations.
“When the market is good, monthly earnings can reach ten to twenty thousand yuan, averaging around seven to eight thousand yuan; however, during lean periods, there might be months without any sales.” This reflects the survival pressure faced by salespersons during economic downturns.
Ah Fang observed that the income disparity between high and low-income groups is widening, compounded by high housing prices and living costs, leading to a significant increase in economic pressure on average families. Some households, due to impulsive investments in bad assets, find themselves unable to repay loans, resulting in a notable rise in foreclosed properties. Ah Fang urged the public to consume rationally and invest carefully.
Mr. Zhang, a resident of Beijing, further revealed the far-reaching impacts of the economic downturn. He told Epoch Times that civil servants are facing about a 10% salary reduction pressure, with some non-first-tier city civil servants experiencing wage arrears of up to a year and a half.
He analyzed that three years of the pandemic have strained finances, with local government debts skyrocketing, such as a county government in Henan province mortgaging two hospitals to companies to repay debts, highlighting financial difficulties.
The job market is equally bleak. Mr. Zhang mentioned that job seekers over the age of 35 have difficulty finding employment, and now even young people around the age of 30 are facing job shortages. Salaries have drastically declined, with positions that once paid ten thousand yuan per month now offering only four to five thousand yuan.
He gave an example of a job seeker who returned from Australia where he earned 300 Australian dollars per day, but upon returning to China, he could only secure a monthly salary of 3,000 yuan, showcasing the wage gap between domestic and international markets and the sluggish domestic job market.
The decline in consumer purchasing power directly affects the restaurant industry. Mr. Zhang noted a sharp drop in restaurant foot traffic, stating that “not even a quarter of the seats are filled in an evening.” There is a widespread trend of downgrading consumption, where families who could afford beef in the past now opt for cheaper dishes.
He mentioned that those with stronger purchasing power are primarily concentrated in the medical and education sectors, such as doctors, medical equipment suppliers, and school principals, as these industries involve essential services with relatively stable incomes.
On the other hand, Mr. Zhang pointed out the significant strengthening of social controls in Beijing. Identity checks in public places are frequent, and plainclothes police officers are deployed at metro transfer stations to verify identities, with particularly strict checks within the Second Ring Road, justified by the fact that “central leaders reside within the Second Ring Road.” Purchasing knives requires real-name registration, which officials claim is to prevent “terrorist activities.”
Civil servants are now subject to strict “alcohol prohibition orders,” with the discipline inspection department conducting 24-hour inspections and even using alcohol breathalyzers. He noted that this reflects stringent monitoring of the behavior of public officials.
Mr. Zhao, a media professional in Beijing, further analyzed the background of the increased stability maintenance efforts. He told Epoch Times that the stability maintenance period before the 2025 “September 3rd Parade” will last for several weeks, with subway stations implementing identity checks, marking a level of control unseen in many years.
He believed that this year’s parade emphasizes “Party organization commemoration,” with a strong political color, focusing more on political propaganda rather than mere commemoration.
Mr. Zhao revealed that the Beidaihe Conference may be convened early to discuss autumn personnel arrangements and strategies to address the economic challenges and the US-China trade war. Additionally, on the 88th anniversary of the July 7th Incident, Beijing will hold a commemoration event for the 80th anniversary of Taiwan’s Recovery, where Xi Jinping may personally attend and deliver a speech.
He also pointed out that Xi Jinping is set to make frequent appearances and speeches during the grand military parade to enhance visibility.
Under the dual pressure of economic and political challenges, there has been a shift in public attitudes. Mr. Zhang stated that ordinary citizens are no longer enthusiastic about discussing political rumors, instead, they “only care about food and clothing.” Social activities have reduced due to economic constraints, with people adopting a passive attitude towards political changes, believing that “whoever comes to power doesn’t matter, as long as a change in leadership offers a 50% chance of improving life.”
“This attitude reflects the public’s helplessness towards economic hardships and their desire for a better life.”