China’s economy continues to deteriorate, leading to a downturn across various industries. The eye-catching “closing sale advertisements” in Heze, Shandong Province, reveal the desperation and helplessness of businesses. The phenomenon of physical stores closing down is widespread in various parts of China. Moreover, significant pay cuts, wage delays, and salary arrears are prevalent, highlighting the social issues stemming from economic difficulties.
Three years of pandemic lockdown have left many businesses in dire straits, with physical stores and small vendors struggling to make ends meet. Despite the lifting of lockdown measures, their situation has not improved.
A netizen from Heze, Shandong Province, shared a video on May 23, revealing that the turnover of food stores at the entrance of residential areas is high, indicating that vendors are not making profits, and some are even incurring losses.
The netizen disclosed seeing a storefront with a “closing sale” advertisement that drew mixed reactions: “Spring 2024 special sale, the final markdown, bye-bye for real” and “End of operations, making money is lame.” The store was branded as “Heze Wanmu Supply Chain Management Company.”
The disclosure sparked resonance among netizens, with many commenting that the advertisement straightforwardly expresses the challenges and helplessness of business operations, reflecting the harsh reality faced by many small businesses. Some netizens remarked, “When a regime makes life so difficult for the people, it heralds its own downfall.”
China’s economic growth has slowed down, especially since the outbreak of the pandemic, imposing greater pressure on the economy. The pandemic control measures have led to reduced consumption, disrupted supply chains, coupled with a sluggish real estate market, posing severe challenges across all sectors. Many small enterprises and individual businesses are struggling to sustain operations due to decreased income and increased costs, leading to closures.
A self-media person from Zhejiang, “Xiao Ma,” recently shared in a video that his restaurant finally closed down, with losses of 300,000 yuan over 12 months.
He invested 500,000 yuan to join a Sichuan cuisine restaurant, expecting a rebound in the food industry after the pandemic restrictions were lifted. However, almost none of his peers in the industry could survive. “After operating for 12 months, I lost over 300,000 yuan. I had to close down, sell the equipment at a discounted price, return the premises, and wrap up everything. Out of the 500,000 yuan investment, less than 200,000 yuan was left.”
“My restaurant’s location was decent, so why did I have poor business? It’s really hard to understand. I dare not venture into the food industry anymore,” Xiao Ma lamented.
On various social media platforms in mainland China, many share similar stories, complaining about the closure of their businesses.
A netizen from Zhejiang, “Determined Little Fish,” expressed, “In 2023, my annual revenue was not enough to cover the rent, let alone generate profits.”
Recently, interviewees from different regions in mainland China told Epoch Times reporters that the financial difficulties faced by the Chinese Communist Party (CCP) government are becoming apparent in their daily lives. They all expressed anxiety and worries, feeling devoid of hope.
Mr. Yu, a high school teacher in Luzhou, Sichuan Province, stated that financial difficulties are certain. Previously, teachers received various subsidies, including overtime pay. Now, there have been reductions in these subsidies or their amounts, affecting the education system and leading to layoffs.
He mentioned the declining birth rate in China, resulting in the closure of many kindergartens, causing teachers to feel anxious about potential layoffs due to decreasing enrollment numbers.
Another self-media person from Sichuan, “Bottle’s Daily Life Diary,” born in the 1980s and working at a company in a small county town, shared in a video on May 25 that her company had been discussing staff layoffs for some time. On the 24th of the month, the management informed her of a significant reduction in annual bonuses and a cut in monthly wages from 8,000 yuan to 3,000 yuan.
“I’ve been working at this company for almost six years. To be honest, the psychological gap is too big. However, many of my colleagues advised me not to resign due to the current unfavorable environment.”
She mentioned shopping for groceries, spending around 200 yuan for her son who is in ninth grade, facing multiple exams next week, requiring proper nourishment.
Amid the economic challenges, layoffs and wage arrears have become more widespread, with many companies reducing expenses through staff reductions. Some companies have resorted to withholding or not paying salaries, severely impacting employees’ rights and causing social discontent and anxiety.
Mr. Zhao, a high school teacher in Henan, mentioned that some units have not paid salaries for several months, noting that receiving basic wages is considered a luxury amidst the financial crisis. He expressed the pain and struggle faced by everyone currently, with uncertainties prevailing.
Ms. Wang, a university lecturer in Henan, highlighted the dire situation where formal institutions are unable to pay salaries on time, causing distress among employees.
Epoch Times correspondent Xiong Bin made contributions to this article.