In recent years, as China’s economy continues to decline, the bustling aura of the international metropolis Shanghai is fading. From the desolation on the streets to the spread of corporate layoffs, this city that once represented China’s vitality is facing unprecedented challenges.
More and more citizens are feeling the economic pressure. Rows of shops are closing down on the main streets, and even in the core commercial districts of the city center, the lively scenes of the past are hard to come by. In a video shared by blogger “Lao Wang” on September 23, multiple Shanghai residents appeared to share their observations.
One Shanghai resident filmed inside an empty shopping mall, where many people were seen lining up to sleep on the floor. Another video shot on Nanjing West Road showed some people sleeping on the streets.
Yuyuan City God Temple, the most representative tourist landmark in Shanghai, is also experiencing a downturn. Citizen Mr. Song visited the site and stated that the current pedestrian traffic has decreased by about two-thirds compared to the same period in 2019. Mr. Song said, “The crowded scenes from the past are gone, and during lunch time, there are hardly any customers entering the stores.” He noted that where there are people, there are few consumers, with most visitors just taking photos and not making purchases.
Another resident mentioned that the decrease in popularity is direct, estimating that the foot traffic has decreased by 99%. Two years ago on Changle Road in Shanghai, many people were seen eating and drinking in front of shops. Currently, at the same location, there are no people to be seen. “Everything is gone now,” the resident remarked.
A citizen stated that many industries in Shanghai are facing difficulties. When everyone is struggling to make money, consumption naturally starts to decline. With business owners unable to earn money, shops are closing down in clusters along the streets. Even in the top commercial districts in the city center, the collapse of consumption is clearly evident. The situation is dire, with not a single person in sight on a normally bustling street. All the shops on the street are eerily quiet. Even in places with foot traffic, upon closer observation, it can be seen that 80% to 90% of people are just window shopping and not making purchases. Shanghai’s train stations are also empty during peak hours.
Some citizens noted that the situation in Shanghai reflects the national economic trend, with even established Shanghai local cuisine restaurants, operating for five years, unable to survive. Formerly popular eateries now have signs saying “store for transfer”.
A female shop owner operating a clothing store expressed regret that her store remained closed yesterday and today. She lamented having prepaid the rent for next year and mentioned that neighboring shops are also contemplating whether to continue paying rent next year. She questioned, “Is this the way things are for all businesses in September this year?”
One Shanghai resident sorrowfully expressed that they can’t sleep at night anymore, feeling like a lost soul during the day. Their monthly salary is only a few hundred yuan, while the mortgage payment feels like an astronomical figure. They feel that their life is completely ruined.
Other residents in Shanghai also expressed feeling the pressure of the economic downturn. Ordinary people work hard all month but earn very little. Worried about repaying mortgages and car loans, they also face the ordeal of potential layoffs. They now truly understand the feeling of not receiving their wages and not having enough to eat.
Economist Wang Depei recently stated in a speech circulating online, “The era of the streets in China has come to an end.” He pointed out that in Shanghai, China’s largest city, Nanjing Road is one of the most luxurious streets. Wang noted that many distinctive shops with a high brand visibility have been closing down one after another on Nanjing Road.
Wang believes that this not only reflects the economic downturn but also is an inevitable result of the shift in consumption patterns and adjustments in business models. He emphasized that with the shift from offline to online consumption patterns and the proliferation of large shopping centers, the decline of the traditional street economy is almost inevitable. “It would be strange if Nanjing Road did not decline.”
In addition to retail and food establishments, state-owned enterprises in Shanghai are also experiencing pressure signals.
Recently, several self-media outlets and online forums have revealed that Shanghai Shentong Metro Group has suddenly initiated a so-called “personnel restructuring plan.” The initial phase involves around 2,000 employees, with a primary focus on employees over 50 years old.
It was revealed that the monthly salary of older employees at Shanghai Metro mostly ranges from 8,000 to 15,000 yuan, while the starting salary for new undergraduate hires is only 4,000 yuan.
The news of “Shanghai Metro laying off 2,000 people” has not been officially confirmed by Shanghai Shentong Metro Group or the authorities. However, discussions on the topic continue to circulate online.
Based on the 2024 annual reports of various metro systems, the profits of metro systems in various cities mainly rely on government subsidies. Among the various operating costs of the metro systems, labor costs are a significant expense.
Shanghai Construction Group is also struggling, with some employees already sharing termination notices online, although there hasn’t been an official confirmation.
According to reports, in the first quarter of this year, Shanghai Construction Group’s revenue decreased by 46.06% year-on-year, and the net profit attributable to shareholders of the listed company was -179 million yuan. The Secretary of the Board of Directors of Shanghai Construction Group, Li Sheng, explained that the total number of project construction bids decreased in the first quarter, leading to pressures on new contract signings, construction output value, and operating income; the real estate and investment businesses fell short of expectations, impacting overall profitability.
According to several bloggers, Shanghai Construction Group is preparing to lay off a large number of employees before the end of the year, reducing the current workforce from 14,000 to below 8,000. It is said to be carried out in phases, with some employees being laid off once projects are completed. Some employees have been asked to stay home without work, receiving only the minimum wage of 2,690 yuan per month.
Shanghai Construction Group is a large state-owned enterprise and a listed company (stock code: 600170). As one of the leading companies in the field of construction in China, it has undertaken numerous large-scale infrastructure and landmark building projects both domestically and internationally, operating under the supervision of the State-owned Assets Supervision and Administration Commission.
Since the outbreak of the COVID-19 pandemic, passenger traffic at Shanghai Pudong Airport has significantly decreased, exposing the airport’s deserted situation. Recently, some bloggers on social platforms have mentioned that Pudong Airport is facing substantial losses and there are rumors of plans to lay off 8,000 people. While there hasn’t been an official announcement of this news, public attention is high. Some netizens lamented, “If even airports are laying off on such a large scale, other industries are even less optimistic. However, this may become the new normal in the future.”