Since the outbreak of the pandemic, the economy in mainland China has been in decline, with numerous shops closing or transferring ownership, and authorities have increased stability maintenance efforts. In Linyi, Shandong, shops for rent or transfer require registration at the urban management department, and at a police station in Lanshan District, a sign prominently displays the words “war zone.”
A resident in Shandong, Mr. Li, mentioned that during his recent visit to Linyi City, he found a large number of street-front shops available for rent or transfer in the surrounding areas close to the main city. “There are more and more shops for transfer along the roadside. The situation is tough for ordinary people. Although there were many transfers during the pandemic, it’s nothing like what we are seeing now,” he said.
It is noteworthy that the format for shop rentals or transfers is labeled with the name of a comprehensive administrative law enforcement bureau in a uniform color-printed format. This indicates the need to register with the urban management department, likely involving the purchase of approvals, followed by receiving printed notices to be posted at the shop entrances.
Furthermore, at the Tai Sheng Plaza Police Station in Lanshan Sub-Bureau of Linyi Municipal Public Security Bureau, the electronic sign prominently displays “Lanshan War Zone.”
State-run media Xinhua News Agency once wrote that “wartime status” is borrowed from military terminology, applicable only to situations that are exceptionally severe, urgent, requiring high mobilization, and massive organization. In epidemic prevention and control, terms like “Wuhan Defense Battle” and “Hubei Defense Battle” can be used to describe a “wartime status.” Regions cannot arbitrarily declare entering a “wartime status.”
Mr. Li expressed that there is a high density of surveillance in the urban area of Linyi, with each ordinary utility pole equipped with five or six cameras facing multiple directions, not the type used for capturing violations. There has been an increase in container guard booths at intersections. He analyzed that the “wartime status” may likely be related to stability maintenance following the economic downturn.
“It’s quite obvious that the economy is declining. Some sections of the road have as many as 30 shops for transfer in a row. They include restaurants, digital shops, training institutions, hotels, clinics, and clubs. Nearby locations have logistics, markets, schools, with a relatively large flow of people.”
He revealed that government units have begun downsizing auxiliary personnel, about 3 out of 10 people being cut, and courts as key units are also reducing auxiliary staff. Auxiliary personnel generally refer to third-party outsourced maintenance staff.
Mr. Zhang from Shanxi also told The Epoch Times that indeed many shops have closed down. For example, in Hai Zi Bian East Street near Liu Lane in Taiyuan, a large number of shops on both sides of the street have shut down, mainly due to severe economic downturn post-pandemic. Even the noodle shop downstairs in his community recently closed down and is now locked up.
Liu Lane is a bustling commercial area in downtown Taiyuan. Hai Zi Bian, located east of the Wenyang Park in Taiyuan, is connected to the vibrant Liu Lane forming a commercial market. “Hai Zi” is a local term in Taiyuan, meaning a pond, pool, or lake.
“Hai Zi Bian East Street used to be very lively before the pandemic, mostly selling clothes, and there used to be traffic jams. Now they are all closed down because of the aftermath of the pandemic (economic struggles),” Mr. Zhang provided videos showing the now deserted Hai Zi Bian East Street with few pedestrians and many shops closed with shutters down, only a few shops remaining open.
Mr. Wang in Shandong is in the wholesale industry, bridging upstream suppliers and downstream merchants. He told The Epoch Times that large wholesale markets, be it snacks or household items, are struggling, and businesses are looking for ways out, enhancing internal management, using new technologies to boost sales profits, and so on. With poor corporate performance, there’s a lot of struggling and helplessness.
For example, a business that originally had 1,200 downstream customer details no longer in stock (transferred or bankrupt), deleted information on over 900 such customers in the past four to five years. In the last three years, about a dozen upstream suppliers have shut down.
“Large wholesale markets for household items, daily goods, building materials, hardware, frozen foods, apart from frozen foods, other businesses are quite average.” Mr. Wang observed that a boss in daily goods often receives goods from the upstream that are not new, causing a backlog, while downstream customers demand new-date goods. It’s challenging for middlemen.
“Just after the New Year, there was some business, but by April, it was no good. With the bad economy, companies are strengthening internal management, driving employees to contact downstream customers more frequently, exploring the remaining value of existing customers. They emphasize more on target results, disregarding the difficulties in the process.”
A search on “Tongcheng 58” for shop transfer information revealed a large number of shops needing transfer every day. A shop on Houjiaqiao Road in Qinhuai District, Nanjing, directly stated in the title of their transfer ad: Can’t hold on anymore! Going back to the hometown to help with farming! Shops for transfer along the street at low prices, any type of business!
Netizens expressed their views, “Starting a business in this era? Even strong people like me want to just lie down! The environment is not favorable, why bother?” “It’s important to cut losses in time, but next month, rent needs to be paid again.” “After three years post-pandemic, the economy is not doing well, and it’s tough for bosses to make money!” “This year is really tough, I am thinking of a change…” “I’ve been inspecting my hometown for over a year and dare not start a restaurant because of the few people on the streets…”
A netizen from Hebei named “Chun Jiuba” stated that after the pandemic, people are reluctant to spend money, realizing that earning money is not easy. All industries are not performing well as the overall environment is unfavorable, leading to many physical stores closing down. High rent and labor costs, especially for restaurants, are challenging, despite many looking busy, in reality, many are just getting by, and some are even losing money, having invested a lot and finding it difficult to give up, exemplifying a common situation.
A convenience store owner in Guangdong recently shared a video mentioning that there are too many shops up for transfer this year, including branded shops, snack shops, and self-operated stores. Are there too few customers? Is it really that people are not spending? He believes it’s now evident that consumer behavior has downgraded.
“When you talk to most people, they say: buy what’s needed, save where possible, cut expenses, including children’s expenses, household expenses, abandoning most spending except for essentials,” he said.
People often say that owning a shop is better than working for someone else. However, this owner expressed that even for an experienced shop owner, it feels very difficult. He advised that when opening a shop, one should first consider rent and labor costs. If the cost is high, it’s hard to sustain; low rent may be manageable. A thorough assessment is necessary to see if the gross profit can cover expenses. If a shop cannot sustain expenses, it will soon close down.