Shanghai’s Truly Done This Time! 12,000 Businesses Left in the First Half, 5 Million Unemployed Fled

Summary

The video script reveals the economic downturn in Shanghai, with TV hosts turning to live streaming to compensate for unpaid salaries. It discusses the broader impact of the pandemic and internet rise on traditional media, leading to salary cuts and job insecurity. The script also touches on the exodus of people and businesses from Shanghai, resulting in a shrinking population and a desolate cityscape. It highlights the challenges faced by the city, including the departure of foreign companies, a decrease in foreign direct investment, and a decline in consumer spending, painting a bleak picture of Shanghai's economic future.

Takeaways

• 📺 Many TV stations are struggling financially, leading to hosts turning to live streaming to supplement their income.
• 😢 Some Shanghai TV hosts have broken down in tears during broadcasts due to unpaid salaries.
• 🏢 Despite their public struggles, long-time TV hosts may have secured substantial assets and are not as pitiful as they appear.
• 📉 China's economic environment is facing challenges, with industries in downturn and TV stations suffering from poor advertising revenues.
• 🏙️ Shanghai Media Group, a significant employer, is reportedly unable to pay salaries and is nearing bankruptcy.
• 🚶‍♀️ Shanghai's population has significantly decreased by over 5 million people, indicating a decline in the city's economic vitality.
• 🛒 The closure of numerous shops and businesses in Shanghai reflects a broader economic downturn and urban decline.
• 📉 Shanghai's retail sales and consumer spending have seen a significant drop, suggesting a lack of consumer confidence and spending power.
• 🏭 The manufacturing sector in Shanghai is in decline, with many factories closing and companies withdrawing, signaling the end of an industrial era.
• 🌐 The withdrawal of foreign investment and companies from Shanghai is impacting the city's economy and international standing.
• 📉 Foreign direct investment in China has dropped to a 30-year low, reflecting a lack of confidence in the Chinese market.

Q & A

Why are TV hosts from Shanghai turning to live streaming sales?

TV hosts from Shanghai are turning to live streaming sales because their stations are struggling to pay salaries due to financial difficulties, and they are essentially told to find ways to make money on their own.

What is the age range of TV hosts in Shanghai, and do they have other sources of wealth?

TV hosts in Shanghai range from the 70s to the 90s, with many appearing younger than they are. Despite their on-screen appearance, they are not as pitiful as they seem, as many have connections and backing, and having worked in the industry for years, they may have secured properties worth tens of millions.

How has the rise of the internet and social media impacted TV stations?

The rise of the internet and social media has led to poor advertising revenues for TV stations, resulting in salary cuts and delayed payments for hosts, becoming the norm.

What is the current economic situation in Shanghai, and how has it affected the job market?

Shanghai's economy has been struggling, leading to a lack of job security. The Shanghai Media Group, which has around 18,000 employees but only 1,000 official positions, is reportedly unable to pay salaries, indicating the severity of the situation.

What was the impact of the 2022 lockdown on Shanghai's economy?

The strict quarantine measures during the 2022 lockdown in Shanghai led to chaos after the zero-COVID policy failed, causing the city's economy to decline further.

How many people are reported to have left Shanghai due to the economic downturn?

Reports suggest that around 5 million people have fled Shanghai due to the economic downturn, with many friends and workers leaving the city to seek opportunities elsewhere.

What is the current population of Shanghai, and how does it compare to the past?

Shanghai's population has dropped from 30 million to just over 24 million, a decrease of more than 5 million people, primarily due to workers and recent graduates leaving the city.

How has the economic decline affected the retail and dining sectors in Shanghai?

The economic decline has led to many store closures, including high-end dining establishments and popular tea and barbecue businesses. The total retail sales of consumer goods have also seen a significant drop, reflecting a decrease in consumer spending.

What is the current state of foreign investment in Shanghai?

Foreign investment in Shanghai has been on the decline, with foreign direct investment (FDI) in China in 2023 dropping to its lowest point in 30 years. Many foreign investors are concerned about China's economic prospects and geopolitical risks, leading to a decrease in the actual use of foreign capital.

How are foreign companies adjusting their investments in China, and what does this indicate for the future?

Foreign companies are adjusting their investments, primarily shifting towards Southeast Asia and India as China gradually decouples from the world. This suggests a lack of confidence in China's business environment and economic outlook, which could lead to a further decline in Shanghai's international influence.

What are the views of the American Chamber of Commerce in Shanghai regarding business prospects in China?

Only 47% of US companies are optimistic about their business prospects in China over the next 5 years, according to a report by the American Chamber of Commerce in Shanghai, marking the lowest level of optimism since the survey began in 1999.

Outlines

00:00

📺 TV Industry Struggles and Hosts Turn to Live Streaming

The television industry is facing financial challenges, with many stations struggling to pay salaries. As a result, hosts from various programs are encouraged to become live streamers and sell products to generate income. Some hosts from Shanghai TV stations have emotionally expressed their situation during live broadcasts. Despite their tears, it's noted that these hosts, many of whom have been in the industry for years, may have secured substantial assets. The economic downturn, coupled with the rise of the internet and social media, has hit TV stations hard, leading to reduced advertising revenues and salary issues. The Shanghai Media Group, with a large workforce, is also reportedly facing financial difficulties, indicating a broader job market insecurity. The pandemic and strict lockdown measures in Shanghai have exacerbated the economic situation, leading to business closures and a significant population decrease in the city.

05:01

🛍️ Economic Downturn Reflected in Retail and Consumer Behavior

Shanghai, once a bustling commercial hub, is now experiencing a significant economic downturn. Traditional shopping areas and malls are deserted, with many international brands closing their stores. The once-thriving Chipo Road clothing wholesale market, which set a Guinness World Record, has lost its glory. The emptiness of Shanghai Railway Station, a prime location, is a stark indicator of the city's economic decline. The overall consumption atmosphere in Shanghai has downgraded, with people showing less desire to spend. High-end dining, a hallmark of Shanghai, has also seen closures. Statistics from the first half of 2024 show a decrease in business revenue and operating profit for large-scale accommodation and catering companies. The decline in consumer spending and the closure of businesses have had a ripple effect across various sectors, including manufacturing, where many factories have shut down, signaling the end of an industrial era.

10:02

🌐 Foreign Investment Withdrawal and Its Impact on Shanghai's Economy

The withdrawal of foreign investment and the decline in exports are significant factors contributing to Shanghai's economic challenges. Multinational companies that were once financial backbones of the city have downgraded China's investment rank and started consolidating operations. Geopolitical tensions and economic uncertainties have led to a trend of foreign companies withdrawing funds from China. Official data shows a significant decrease in foreign direct investment in 2023. Concerns over national security regulations have deterred foreign investors. The outflow of foreign capital has been exacerbated by a decrease in exports and the closure of companies, leading to a loss of talent and capital. The cancellation of international routes and a decrease in foreign-invested enterprises reflect a decline in Shanghai's international influence. A report by the American Chamber of Commerce in Shanghai indicates a pessimistic outlook among US companies regarding their business prospects in China.

15:03

🏙️ The Need for International Openness to Revive Shanghai's Economy

The final paragraph discusses the importance of international openness for Shanghai to reclaim its status as a world-class city. The author argues that without comprehensive openness in economy, finance, technology, education, and culture, Shanghai cannot achieve its full potential. The withdrawal of foreign enterprises and the decline in commercial activity are seen as signs of a lack of openness. The author expresses concern over the city's future if it cannot revive and become more open, as this would impact not only its economic prospects but also its social and cultural vitality. The current state of low consumption and business closures is viewed as a dangerous signal for the city's recovery.

Keywords

💡Live Streaming

Live streaming refers to the broadcasting of real-time video content over the internet. In the context of the video, it is highlighted as a new revenue stream for TV hosts who are struggling with unpaid salaries. The script mentions that TV stations have allowed their hosts to become live streamers and sell products, indicating a shift in the media landscape where traditional broadcasting is complemented by digital platforms for financial sustainability.

💡Salary Cuts

Salary cuts involve a reduction in the wages or salaries paid to employees. The video script discusses how TV stations are struggling financially, leading to salary cuts and delayed payments for hosts. This term is central to understanding the economic challenges faced by the television industry and the subsequent push for alternative income sources like live streaming.

💡Economic Downturn

An economic downturn is a period of negative growth in an economy, often characterized by reduced industrial activity, increased unemployment, and lower corporate profits. The script uses this term to describe the broader economic environment affecting industries, including TV stations, which are experiencing poor advertising revenues and financial difficulties.

💡Job Security

Job security refers to the stability and safety of one's employment. The video script mentions that the lack of job security is evident in the TV industry, with many employees needing to find new jobs due to financial struggles and potential bankruptcy of media groups. This keyword is significant as it underscores the uncertainty and risks faced by workers in the current economic climate.

💡Pandemic Impact

The pandemic impact refers to the effects of a widespread disease outbreak on various aspects of society, including health, economy, and daily life. The script discusses how the COVID-19 pandemic has led to strict quarantine measures, economic decline, and business closures in Shanghai, highlighting the pandemic's role in exacerbating existing economic issues and accelerating the decline of certain sectors.

💡Urban Decline

Urban decline is the process by which a city experiences a decrease in population, economic activity, and overall vitality. The video script describes Shanghai's urban decline through the lens of store closures, business shutdowns, and a shrinking population, illustrating the city's transformation from a bustling economic hub to a place experiencing significant challenges.

💡Consumer Market

The consumer market encompasses all the individuals or groups who purchase goods and services for personal use. The script discusses the impact of economic pressures on the consumer market, noting a decrease in consumer spending and an increase in store closures. This keyword is crucial for understanding the ripple effects of economic downturns on everyday consumers and businesses.

💡Foreign Investment

Foreign investment involves the investment of capital by entities from one country into businesses or assets in another country. The video script mentions the withdrawal of foreign investment from Shanghai, which has led to a decline in economic activity and job opportunities. This keyword is important for understanding the interconnectedness of global economies and the impact of geopolitical dynamics on local economies.

💡Manufacturing Decline

Manufacturing decline refers to a decrease in the production and output of goods in a country or region's manufacturing sector. The script highlights the closure of factories and the withdrawal of manufacturing companies from Shanghai, signaling a shift away from traditional industries and the challenges faced by cities in adapting to new economic realities.

💡International Openness

International openness refers to a country or city's willingness to engage with the global community through trade, investment, cultural exchange, and other forms of international cooperation. The video script discusses the importance of international openness for a city like Shanghai to maintain its status as a world-class city. The decline in openness is seen as a contributing factor to the economic challenges faced by the city.

💡Economic Outlook

Economic outlook refers to the expectations and predictions about the future state of an economy. The script mentions the pessimistic economic outlook for Shanghai and China, as indicated by the withdrawal of foreign companies and a decrease in foreign direct investment. This keyword is significant for understanding the broader economic trends and the challenges faced by businesses and governments in planning for the future.

Highlights

TV stations are struggling to pay salaries, leading hosts to become live streamers and sell products.

Shanghai TV hosts have broken down in tears during live broadcasts due to unpaid salaries.

Despite tears, hosts from Shanghai TV are not as pitiful as they seem, having secured properties worth tens of millions.

China's economic environment is facing a downturn, impacting TV stations and leading to poor advertising revenues.

Salary cuts and delayed payments for TV hosts have become the norm.

Shanghai Media Group, with around 18,000 employees, is reportedly unable to pay salaries and on the brink of bankruptcy.

Shanghai's economy suffered during the 2022 lockdown, leading to business closures and urban decline.

Reports suggest 5 million people have fled Shanghai, seeking opportunities elsewhere.

Shanghai's population has dropped from 30 million to just over 24 million, a decrease of more than 5 million people.

Shanghai's once bustling shopping areas are now desolate with many stores closed.

International brands have shut down their stores in Shanghai, a sign of economic decline.

Shanghai railway station, usually packed, is now deserted, reflecting a significant downgrade in consumption.

Many high-end dining establishments in Shanghai have closed, impacting the city's reputation for fine dining.

Shanghai's total retail sales of consumer goods fell significantly year on year.

Shanghai's manufacturing decline is an indisputable fact with numerous factories closing.

12,000 companies moved out of Shanghai in the first half of the year, a significant number for any city.

Foreign direct investment in China in 2023 dropped to its lowest point in 30 years.

The American Chamber of Commerce in Shanghai reports that only 47% of US companies are optimistic about their business prospects in China.

Shanghai's economic situation is worsening, with a lack of openness being a fundamental issue.

Transcripts

in the television industry there's an

Open Secret many TV stations are

struggling to pay salaries as a result

they've allowed their host including

those from Comedy programs year operas

and peaking Opera programs to become

live streamers and sell products

essentially they are told to find ways

to make money on their own which is now

permitted some hosts from Shanghai TV

stations have being broken down in tears

during live broadcast saying that the

stations can no longer pay their

salaries which is why they've turned to

live streaming sales I believe their

tears are genuine after all they've been

in the industry for so many years and

I'm not young anymore many of those

Shanghai TV stations are older than me I

was born in 1981 and most of them are

from

the70s younger hosts in the 90s are

quite rare don't be fooled by how young

some female hosts appear on TV many are

already in their

50s however they're not as pitiful as

they seem those who get into Shanghai TV

have connections and backing having

worked there for so many years they

probably managed to secure properties

worth tens of millions even a skinny

camel is bigger than a horse sometimes I

think when they cry they just want you

to buy the products what's your monthly

pension back when things were good for

them a single gift packet was worth more

than 5 or 6,000 Yen do you really need

to feel sorry for them China's economic

environment is struggling with

Industries facing a downturn the rise of

the internet and social media have

further impacted TV stations leading to

poor advertising revenues salary cuts

and delayed payments for hosts have

become the norm a woman in a video

stated that Shanghai TV couldn't pay

salaries forcing hosts to return to live

streaming selling which sparked

criticism online such as Chinese TV

stations are used to lying and now

they're facing the consequences Shanghai

TV hosts are now selling Ducks sea

cucumbers and wine they've earned enough

before or stop playing the sympathy card

Shanghai Media Group formed a decade ago

is also reportedly unable to pay

salaries and is on the brink of

bankruptcy the group has around 18,000

employees but only 1,000 have official

positions the remaining 17,000 now need

to find new jobs indicating the lack of

job security in today's market during

the pandemic Shanghai China's economic

Center went into complete Lockdown from

April to June 2022 the strict quarantine

measures led to chaos after the zero Co

policy failed shanghai's economy

continued deine one prosperous the city

is now desolate with many shops closing

down and numerous businesses shutting

their doors a reflection of urban

decline what happened to Shanghai this

year reports suggest that 5 million

people have fled the city many friends

around me have left all their hometowns

to seek opportunities the focus of

conversation has shifted from starting

businesses and making money in Shanghai

to leaving the city Shanghai is China's

economic Hub and representative of the

country's economy it has seen many

people leaving in the past two years

nowadays finding a seat on the subway is

easy government data shows that

shanghai's population has dropped from

30 million to just over 24 million a

decrease of more than 5 million people

most of those leaving are workers and

recent graduates the pandemic revealed

many problems many foreign companies

have left and small and mediumsized

businesses have gone bankrupt the

companies that remain are struggling

resorting to pay cuts and layoffs to

save cost as workers lose their jobs and

return to their hometowns fewer people

are out shopping so many stores close

and reduce chob opportunities even

further Shanghai has now become a city

with a shrinking

population Cho old Street was once

bustling and thriving finding a spot on

Ching Road was nearly impossible the

area was incredibly popular and leasing

out a shop could easily fetch hundreds

of thousands fast forward 10 years and

now we see that many stores and brands

have gradually shut down and moved out

some discount Brands even use this space

for temporary sales the on common saying

one step can support three generations

has been shattered in the current

economic climate the area is now

desolate with only The Gold Store Lao

Fang xang Still Standing due to its

profits all other shops have failed

leaving the street

empty at the end of August people filmed

more than 50% of the stores closed in

the super Brand Mall one of shanghai's

prime shopping malls located in the

heart of

luad next to the Oriental Pearl Tower

and shanghai's three tallest building is

mall was once the king of shopping

destinations now it is Bleak with more

staff than customers super brand Maul is

representative of of

Lu and LU is a microcosm of Shanghai B

shopping mall is another mall that has a

prime location with the holidays

approaching one would expect it to be

bustling however the reality is that

there are hardly any customers post

pandemic Shanghai has experienced a wave

of store closures even on traditional

commercial streets many International

brands have shuted their stores the once

crowded chipo Road clothing wholesale

Market with set a Guinness's World

Record with over a million customers on

its opening day has also lost its formal

Glory the wave of store closures is a

direct sign of economic

decline come and take a look at the

empty Shanghai railway station it's

completely deserted not a single person

around well maybe one this place used to

be packed such a prime

location actually the occupancy rate of

this highspeed r rail is like an

economic barometer in the past it used

to be fully booked during the mid Autumn

Festival but now every Carriage is

empty shanghai's overall atmosphere

reflects a significant downgrade in

consumption with people seemingly losing

their desire to spend Shanghai is known

for its concentration of high-end dining

in mainland China has seen many

restaurant closures for example the

mission St

shahal closed in February this year Aid

report of the owner fleeing and owing

wages Shanghai uan which received a

Michelin star in 2019 also sees

operations at the end of May this year

previously popular tea and barbecue

businesses now face the Dilemma of no

customers many businesses across

Shanghai are struggling waiting for

customers who never come according to

shanghai's Bureau of Statistics in the

first half of 2024 large scale

accommodation and catering companies

Within annual business revenue of 2

million yen or more reported a total

revenue of 75.3 billion yen marking A

2.6 decrease compared to the same period

last year the operating profit was a

negative 770 million yen what led to the

situation as economic pressure increases

ordinary people's purchasing power has

significantly shrunk people are

increasingly inclined to reduce

unnecessary expenses with some

entertainment spending becoming a luxury

this impacts not only the restaurant

business but also also cast a shadow

over the entire consumer Market data

shows that in June 2024 shanghai's total

retail sales of consumer goods fell by

99.4% year on-ear in July it fell by

6.1% year on-ear although there was a

slight Improvement in July compared to

June it remains weak the summer tourism

season did not bring a significant boost

to Shanghai a core tourism destination

in China this data is alarming some

economists believe that Shanghai is a

leading indicator of China's economy and

the collapse of consumption suggest a

more severe economic downturn in the

second half of the year in recent years

shanghai's manufacturing decline is also

an indisputable fact numerous factories

have closed manufacturing companies have

withdrawn and ones busy production lines

have become deserted this signals the

end of a once glorious industrial era

how serious is this loss of Enterprises

in Shanghai in the first half of the

Year 12,000 companies moved out of

Shanghai a significant number for any

City according to data from shangti

industrial data from January to June

2024

12,436 Enterprises left Shanghai for

other cities in terms of Industry

distribution companies and Trade

Services software Information Services

and digital creativity were the most

likely to move out of the city from

January to June

20124 one view is that cost pressure is

the most critical Factor driving

companies out of Shanghai

as a top tier Metropolis shanghai's cost

for land labor transportation and time

are significantly higher compar to

surrounding

cities under this pressure some small

businesses with low profits and those

struggling for survival often cannot

bear the burden in the face of Industry

downturns many have noticed the severe

loss of companies in Shanghai recently a

person commented that in the jingchao

area of Shanghai there used to be 10

companies in their building now only

three are left the entire park is quiet

and there's no need to worry about

parking spaces because there are so few

people that even the canteen has closed

shanghai's decline is directly linked to

the departure or downsizing of foreign

trade companies such as Micron

Technology HP Qualcomm Microsoft IBM and

City Bank as a major hub for foreign

Capital shanghai's economy will be

deeply impacted by their withdrawal of

foreign investment

these multinational Giants have been

major contributors to shanghai's tax

revenue serving as the city's Financial

backbone however due to China's economic

slowdown and declining profits many

multinational companies have downgraded

China's rank on their investment list

and started consolidating their

operations in China the risk of the US

China geopolitical struggle and

uncertainty over China's economic

prospects have also led many analysts to

observe a trend of foreign companies

withdrawing funds from China

according to Chinese official data

released earlier this year foreign

direct investment FDI in China in 2023

dropped to its lowest point in 30 years

many foreign investors are also

concerned about beijing's recent

amendments to National Security and

state secrecy regulations which deter

foreign investors according to

shanghai's government data the actual

use of foreign investment in shangai a

significant hub for foreign Capital

decreased by 20% from January to June

2024 with a dramatic 37.5% drop in the

technological research and development

sector what's even more concerning is

the outflow of foreign capital in

addition exports decline by 8.2% year on

year compared to the previous year

indicating a grim outlook for shanghai's

exports from January to June 2024

Shanghai established 37 new foreign

invested Enterprises an increase of

18.3% % year onye however the actual use

of foreign Capital decrease by

20.2% this shows that while the number

of new foreign Enterprises have

increased the actual investment amount

has significantly decreased reflecting

uncertainty about China's business

environment and economic Outlook with

business confidence falling into an

all-time low on August 27th the director

of the Shanghai development and Reform

Commission stated external blockades

have hindered exports narrow populism

and bureaucratic practices have driven

away foreign capital and the real estate

bubble posed a significant risk with

sluggish internal consumption offering

little hope it is a critical moment for

development the withdrawal of foreign

investment and trade has also led to a

loss of talent and capital between

January 9 and February 8th this year the

Shanghai exit entry Administration

handled over 380,000 entry and exit

documents ments for Chinese citizens

setting a new record this trend has also

resulted in the cancellation of several

International routs between Shanghai and

developed Western countries the Shanghai

Sydney route was suspended on July 28th

and the Shanghai London route will be

suspended starting October 26th other

routs have switched to smaller aircraft

all these factors indicate a decline in

shanghai's international

influence on September 12th a report by

the American Chamber of Commerce in

Shanghai revealed that only 47% of us

companies are optimistic about their

business prospects in China over the

next 5 years a 5% decrease from last

year this is the lowest level of

optimism recorded since the survey began

in

1999 political commentator wangka

remarked that this essentially means

that over half of these companies hold a

pessimistic view of China's business

outlook for the next 5 years this figure

the lowest on record suggests a

fundamental reverse IAL in foreign

investors intentions towards investing

in China the report surveyed 306 us

companies across multiple Industries

with 70% reporting losses last year Alan

gabo chairman of the American Chamber of

Commerce in Shanghai noted that although

the Chinese government has announced

several positive policies the data this

year reflects that these measures have

not fully resorted confidence among

private Enterprises or the general

consumer Gabor pointed out that factors

like domestic demand and deflation in

China have led to a continued decline in

profitability many members have spent

decades building their brand in China

and must now manage a changing

environment that may require them to

make tough near-term decisions as they

adjust their businesses to navigate New

Market and geopolitical Dynamics the

report also highlighted that 40% of

American companies in China are

adjusting their Investments primarily

shifting towards southeast Asia and

India as China gradually decouples from

the world and accelerates internal trade

an escalating trade War could erode the

production advantages of foreign Capital

turning them into

disadvantages this could lead to a

catastrophe showing that success and

failure both depend on exports recently

Mr Chen a well-known blogger with

320,000 followers expressed his concerns

about shanghai's economic situation on

social media he

stated Shanghai is getting worse and

worse what's the fundamental issue it's

a lack of openness when a city cannot

reach the level of international

openness it cannot claim to be a

worldclass city what is international

openness it means comprehensive openness

in areas like the economy Finance

technology education and culture I

believe this is fundamental without it

there is no point in discussing being

the most developed City

Shanghai inherently has the qualities of

a world-class City its scale economic

growth rate diverse culture citizens

quality and cultural depth however in

recent years I've increasingly lost hope

consider the current social situation

and public opinion environment look at

how many foreign Enterprises have

withdrawn from Shanghai recently

reportedly 10,000 to

20,000 many have scaled back their

operations regardless of the reasons

failing to retain foreign companies

leads to substantial economic losses

this impacts other aspects like social

and cultural Vitality the commercial

situation in Shanghai is even more

severe this year look at the major

shopping malls and streets is the former

Prosperity still there how many shops

have closed down even naning East Road

though still crowded has been a

significant drop in

consumption I've asked several stores

and they all say business is much worse

than before non-consumption or low

consumption is the current state this is

a dangerous signal if Shanghai cannot be

revived then other cities have no hope