On October 17, the largest computer commercial entity in the northwest region of mainland China, Xi’an Seg Computer Mall, officially closed its doors. Insiders revealed that over the past five years, more than three hundred large-scale electronic markets nationwide have closed down, and the closure of Xi’an Seg marks another end of the era of Chinese computer cities.
This commercial landmark once known as the “Electronic Heart of Northwest” spent 25 years accompanying the citizens of Xi’an before ending its operation due to factors such as the economic downturn in China. In June of this year, news of Seg Computer Mall closing spread. The Beilin District Wenyi Road Street Office confirmed to the public that the mall’s lease was expiring and would not be renewed. Subsequently, several media visits found merchants beginning to clear shelves, with some shops relocating to “Bairui Future City” and “Jindu Computer Mall.”
On October 11, Xi’an Seg Computer Mall sent out invitations for a closing ceremony, inviting former partners and loyal customers to participate. On the evening of the 16th, merchants gradually withdrew, and one by one, the lights went out. This farewell ceremony has also marked the end of the era for the largest computer city in the northwest.
Mr. Zhang, a merchant, said in a media interview that he has been doing business here since 2003. His shop has now relocated to Jindu Computer Mall, but he expressed the challenge of having to rebuild his customer base. Ms. Wei, a resident of Xi’an, shared that her first computer was purchased at Seg, recalling that it was her most expensive purchase during her college days.
With the closure of Seg, Ms. Wei expressed sadness, attributing the current outcome to the poor economic environment: “I have been dealing with the shop owner for almost ten years. Even after surviving the epidemic, they could not make it now. No one can withstand such political and business environments.”
According to reports, since its opening in 2000, Xi’an Seg Computer Mall had been consecutively listed among the top ten computer cities in the country. At its peak, the mall accounted for over 60% of the IT sales in Xi’an market, with annual sales exceeding billions. The area at Wenyi Road intersection was once filled with aspiring tech enthusiasts and hardware price quotations, becoming a memory for a generation.
Mr. Zhao, an industry insider in Xi’an, said in an interview after Seg’s closure that there will no longer be a large-scale computer mall in the area, and people will have to resort to online purchases. He believes Seg’s closure was due to the unsuitable business environment: “Currently, nine out of ten electronic stores are losing money. According to a rough industry estimate, over three hundred large electronic markets nationwide have closed down in the past five years, with more planning to exit in the latter half of the year, some scaling down or switching to computer and mobile repair shops.”
In recent years, many large electronic markets across mainland China have either closed or transitioned. For example, Dinghao Electronic Mall in Zhongguancun, Beijing, has exited the electronic retail field; markets like Taipingyang Computer City, New Seg, and Bainao Hui in Gangding, Guangzhou have experienced closures, splits, and integration adjustments.
Currently, there are still a few large computer cities operating in mainland China. For instance, Shenzhen Seg Square continues its wholesale business of electronic components and computer equipment, while Beijing Seg Computer City has undergone multiple rounds of restructuring, reducing its scale and focusing on maintenance and peripheral sales. A resident of Zhongguancun, Beijing, Mr. Gao, said: “Although these existing markets have not closed yet, the flow of customers has significantly decreased, and tenant turnover is slow. It’s uncertain when they might close.”
Regarding the worsening business environment in China, retired professor Zhang from Guizhou University stated that the authorities’ policies have made business operations difficult across various industries. He criticized the frequent restructuring of commercial areas by local governments to align with the CCP policies, leading to the inclusion of private businesses into redevelopment plans. “The end result is evident – private enterprises are leaving and closing down. From the Pearl River Delta to the Yangtze River Delta, private enterprises are struggling everywhere. This is not ‘upgrading,’ but a plan to destroy businesses.”
According to relevant departments in Beilin District of Xi’an where Seg Mall was located, the original site will be transformed into a science and technology innovation center to promote technology transformation and the development of “new quality productivity.” In response, Mr. Zhang pointed out that under the guise of “optimizing the structure” promoted by the government, many merchants have indicated that increased tax burdens, financing difficulties, and strict regulations are worsening the business environment. “The shrinking of private commercial spaces has become a common phenomenon in Chinese urban economies.”