In recent months, a growing number of private enterprises in Zhejiang, Jiangsu, and Guangdong have revealed to reporters at Epoch Times that due to policy pressures, rising costs, and sanctions from the West, many companies have opted to move their operations overseas since the beginning of this year. In particular, in Wenzhou, Zhejiang, about 20% of competitive enterprises have either completed or are currently planning the relocation process.
During the recent national holiday in China, while state media emphasized the “great rejuvenation of the Chinese nation” and grand narratives, another side of Chinese society has quietly emerged. A significant amount of private capital and manufacturing industries are discreetly relocating, shifting their production chains to Southeast Asian countries, among others.
Wenzhou businessmen have traditionally maintained close ties with overseas markets. Mr. Zhou, a manufacturing factory owner in Wenzhou, revealed in a recent interview with Epoch Times that many businesses with dealings in Europe have been accelerating their departure from China since the beginning of this year. He stated, “Many of the competitive enterprises in our region are relocating their factories. I have moved more than half of my production capacity to Indonesia and India.”
Originally operating two factories in Wenzhou, one exporting to Europe and the other to the United States, Mr. Zhou expressed that certain competitive enterprises in their region have already relocated abroad due to political environment concerns. He mentioned that some have applied for investment immigration visas in Europe, while others have obtained U.S. green cards. Approximately 20% of profitable factories in Wenzhou have either relocated or are in the process of shutting down.
Mr. Liu, a member of the Hangzhou Wenzhou Chamber of Commerce with over 4,000 members, mentioned that apart from Wenzhou, there is a trend among business owners in cities like Taizhou and Ningbo in Zhejiang to explore countries such as Vietnam, Thailand, Indonesia, and India for potential relocation. He informed reporters that before the end of last year and during the Chinese New Year, many business owners visited countries like Vietnam and India for research purposes.
On October 1st, the owner of a textile factory in Ningbo expressed his frustration, stating, “In China, everything from raw materials, environmental protection, labor costs, and social security has been increasing. Our profits have been squeezed down to only 2% to 3%, among the lowest in the world, making it impossible to continue. Renting a factory in Vietnam can cut labor costs in half and possibly reduce rent by half or more.”
Meanwhile, a hardware factory owner in Taizhou took his entire family to explore industrial zones in Thailand. He explained, “The pressures domestically, such as environmental protection, social security, and escalating taxes, are too immense. Staying here offers no clear path for the next three to five years.” Many business owners bluntly stated that their decisions were not about patriotism but survival in challenging circumstances.
Simultaneously, macroeconomic data continues to reflect downward pressures. In August 2025, China’s export growth only increased by 4.40% year-on-year, a noticeable drop from 7.20% in July. The overall export growth in the first eight months was 6.9%, while imports experienced a year-on-year decline of 1.2%, exacerbating the imbalance in import and export structures. The real estate industry is deeply engulfed in a debt crisis, with significant amounts of maturing debt reaching up to 770.31 billion yuan in 2024. Several leading real estate companies have defaulted both domestically and internationally, putting pressure on various related industries.
Local fiscal revenues are constantly shrinking, and there is a lack of momentum in infrastructure investment, resulting in a contraction of job opportunities. Mr. Fang, working in Nanjing, expressed his concerns about finding employment, mentioning that many factories are laying off workers or shutting down, with restaurants mostly hiring locals. He shared that even if he went back to his hometown in Hubei, there would be similar difficulties in finding work. Many of his acquaintances are already at home, barely making ends meet by taking odd jobs or working as delivery drivers.
Mr. Huang, who worked as a technician in a company in Binzhou, Shandong, faced challenges amidst factory closures and layoffs. He said, “In July, the factory laid off 200 employees for the holidays, and by September, it closed its doors completely. I have submitted hundreds of resumes with little response. Occasionally, there are job interviews offering a monthly salary as low as 3,000 yuan. It’s no wonder many university students are turning to delivery services.”
In recent years, China’s economy has been confronted with multiple downward pressures: slowing exports, sluggish investments, soaring real estate debts, and strained local finances. The accelerated overseas relocation of private enterprises, the contraction of the manufacturing industry, and the significant reduction in job opportunities highlight the uncertainties that ordinary people face about their future, overshadowing the official slogans of prosperity and stability.
Retired scholar Mr. Wang from Guizhou University pointed out, “If the Chinese authorities continue to neglect the livelihoods of the people and only chant about the so-called great rejuvenation, they will eventually lose the trust of society in these empty slogans. A strong nation is built on the stability of ordinary people’s lives, their ability to work, and access to healthcare. If these basic needs cannot be guaranteed, then the so-called rejuvenation is merely deceiving the public.”
Multiple interviewed business owners and scholars emphasized that the relocation of private enterprises is no longer just an individual choice but a trend. The withdrawal of the manufacturing industry signifies the loss of job opportunities, which are fundamental to societal stability. As industries are compelled to shift overseas, what is left behind are factories shutting down and workers left unemployed. While this may be a survival strategy for businesses, for ordinary people, it represents greater economic instability in their livelihoods.