Beijing, Shanghai Are Done! 1 Million Eateries & Hotels Close, Signaling China’s Economic Collapse

Summary

The video script details the decline of China's restaurant and hotel industries amid economic challenges. High-profile brands face financial troubles, and both high-end and small-scale establishments struggle with reduced demand, excessive rents, and overexpansion. The situation mirrors a broader economic downturn, with consumers cutting back on spending and businesses grappling with closures and bankruptcy. The report paints a bleak picture of the current state of the hospitality sector, with a significant number of closures and a grim outlook for future sustainability.

Takeaways

• 🏬 The mall industry is facing challenges with reduced foot traffic and closures, as observed at Beijing Longo Plaza.
• 🍽️ Restaurants, especially high-end ones, are struggling with closures due to reduced demand and high rental costs.
• 📉 Iconic brands like Kujū and Tianjin Goubuli are experiencing financial difficulties, reflecting broader industry struggles.
• 💸 Consumers are cutting back on spending, opting for more affordable dining options instead of high-end establishments.
• 📈 In 2023, there was a significant surge in restaurant openings, leading to overexpansion and subsequent closures.
• 📉 The restaurant industry in Beijing saw a significant drop in profits, with large-scale restaurants particularly affected.
• 🏙️ The economic downturn has led to a decrease in spending across various sectors, not just in dining out.
• 📊 High rental costs are a major factor contributing to the struggles of restaurant owners, even in the face of lower property prices.
• 📉 The profit margins in the restaurant industry have become extremely thin, with some operating at near break-even levels.
• 🏨 The hotel industry is also facing a wave of closures, with many owners unable to sustain operations due to the economic climate.

Q & A

What is the current state of the retail and restaurant industry in Beijing as described in the transcript?

The retail and restaurant industry in Beijing is facing significant challenges, with many businesses closing down and high vacancy rates in malls. Even popular and once bustling areas are now struggling with reduced customer traffic and increased closures.

What is the impact of economic downturn on high-end restaurants in Beijing?

The economic downturn has led to a significant decline in revenue and profits for high-end restaurants in Beijing, with some iconic brands reporting substantial losses and others closing down completely.

What role do rental costs play in the struggles faced by the restaurant industry in China?

High rental costs are a major factor contributing to the struggles of the restaurant industry in China. Many restaurants are operating on thin profit margins and are unable to cover their high rents, leading to closures.

How has the overexpansion of the restaurant industry in China contributed to its current crisis?

Overexpansion has led to an oversaturated market, with more restaurants opening than there is demand to support them. This has resulted in intense competition, price wars, and ultimately, many restaurants failing to sustain operations.

What is the effect of reduced consumer spending on the restaurant industry in China?

Reduced consumer spending has forced the restaurant industry to adapt by offering more affordable options and discount deals. However, this has led to a race to the bottom in terms of pricing, with many businesses struggling to maintain profitability.

What is the current profit margin for the restaurant industry in Beijing, as mentioned in the transcript?

The current profit margin for the restaurant industry in Beijing is as low as 0.37%, indicating a very challenging business environment where operating costs are high and revenue is low.

How are small and medium-sized restaurants faring in the current competitive landscape in China?

Small and medium-sized restaurants are finding it extremely difficult to compete due to high rents, intense competition, and the need to lower prices to attract customers. Many are struggling to stay afloat and some are closing down.

What is the impact of the economic situation on consumer behavior in terms of dining out in China?

Consumers are becoming more price-conscious and are opting for more affordable dining options. There is a shift away from high-end dining and towards budget-friendly alternatives.

What are some of the strategies that restaurants in China are employing to stay competitive in the current market?

Restaurants are employing strategies such as offering discounted meals, introducing lower-priced menu items, and participating in group buying deals to attract customers and stay competitive.

How is the hotel industry in China being affected by the economic downturn and changing consumer behavior?

The hotel industry is experiencing a significant downturn with many hotels facing closures, particularly in major cities like Beijing and Shanghai. High operating costs and reduced demand are contributing to the struggles.

Outlines

00:00

📉 Economic Downturn Impacts Beijing's Retail and Restaurant Sectors

The video script discusses the challenges faced by businesses, particularly in the retail and restaurant sectors, in Beijing. It highlights the emptiness of a once bustling mall, Longo Plaza, and the closure of numerous restaurants and stores. The script mentions the difficulty of finding new tenants for vacant spaces and the struggle of existing businesses to survive. It attributes these issues to reduced consumer demand and an economic downturn. The script also points out the financial struggles of well-known restaurant brands, the impact of high rental costs, and the overexpansion of the restaurant industry. It concludes by suggesting that consumers are now more price-conscious, leading to a shift towards more affordable dining options.

05:00

📊 Deep Dive into the Plunging Profits of Beijing's Restaurant Industry

This paragraph delves into the financial data of Beijing's restaurant industry, showing a significant decline in revenue and profits. It details the year-on-year decrease in revenue and the drastic drop in profit margins. The script discusses the struggles of full-service restaurants, fast food services, and other dining sectors, with many establishments facing collective losses. The video also touches on the competitive landscape, with large chains like Nang Shang driving smaller businesses to close. It paints a picture of an industry in crisis, with high-profile restaurants shutting down and a general sense of financial strain across the sector.

10:01

🏨 The Bleak Reality of China's Restaurant and Hotel Industries

The script shifts focus to the broader implications of the economic downturn on China's restaurant and hotel industries. It discusses the high rate of new restaurant openings and closures, indicating a tough business environment. The video mentions the fierce competition leading to price wars and the struggle of small businesses to survive. It also includes interviews with restaurant owners who are operating at a loss and the challenges they face with delivery platforms and group buying promotions. The script concludes with predictions of an upcoming wave of hotel closures and the impact of these economic changes on workers in the industry.

15:03

🌐 Widespread Economic Effects and Consumer Behavior in China

The final paragraph expands on the nationwide impact of the economic downturn, including in tourist destinations. It describes the decline in home stay prices and the emptiness of accommodations, reflecting reduced tourism. Personal accounts from business owners and residents highlight the lack of customers and the daily financial losses. The script also touches on the broader economic environment, with high unemployment and businesses closing down. It includes perspectives from wealthier individuals who are also cutting back on spending due to economic uncertainty. The video ends on a somber note, reflecting the widespread economic challenges and their effects on consumer behavior and business viability.

Keywords

💡Economic Downturn

An economic downturn refers to a period of negative economic growth or decline. In the video, it is mentioned as a fundamental reason for businesses, particularly in the restaurant industry, struggling. It is illustrated by the closure of numerous restaurants and the difficulty of maintaining profitability, as seen in the example of the Beijing Longo Plaza and the overall decrease in consumer spending.

💡Reduced Demand

Reduced demand indicates a decrease in the quantity of goods and services that consumers are willing to purchase. The video script highlights this concept by discussing the emptiness of malls and restaurants, suggesting that people are not spending as much as they used to, leading to business closures and financial struggles for the remaining establishments.

💡Brand Name Premiums

Brand name premiums are the additional costs consumers are willing to pay for products or services due to the brand's reputation. The script mentions that people are no longer willing to pay these premiums, which is affecting high-end restaurants and stores, as they are forced to close or downgrade their offerings to match the current consumer preferences.

💡Occupancy Rate

Occupancy rate measures the proportion of space in a building that is currently rented or in use. In the context of the video, it is used to describe the decline in the restaurant industry, with many establishments having less than 70% occupancy, indicating a significant number of unoccupied seats or spaces, which directly impacts their revenue and survival.

💡Rental Costs

Rental costs refer to the expenses businesses incur to lease physical spaces, such as storefronts or restaurant locations. The video emphasizes the burden of high rental costs on businesses, especially in the context of an economic downturn, where the inability to cover these costs can lead to closures, as exemplified by the plight of restaurant owners in Shanghai.

💡Profit Margin

Profit margin is the ratio of profit to revenue for a business. A low profit margin, as mentioned in the video, indicates that businesses are earning less profit per unit of revenue, which can lead to financial difficulties. The script cites the restaurant industry's profit margin as being as low as 0.37%, suggesting a severe struggle for businesses to remain sustainable.

💡Market Saturation

Market saturation occurs when a market has reached the point where all potential consumers have been served and further growth is unlikely. The video discusses the surge in restaurant openings in 2023, which led to market saturation, making it difficult for new and existing businesses to thrive, resulting in many closures.

💡Consumer Spending

Consumer spending refers to the money spent by households on goods and services. The video script notes a significant reduction in consumer spending, particularly in non-essential categories like high-end dining, which has forced businesses to adapt by offering more affordable options or face closure.

💡Lease Agreements

Lease agreements are legal contracts outlining the terms under which a property is rented. The video mentions that some lease agreements include clauses to prevent competition from specific brands, like Nang Shang, which can impact the viability of smaller businesses and contribute to the broader challenges faced by the restaurant industry.

💡Price Wars

Price wars occur when competitors engage in aggressive price-cutting to attract customers, often at the expense of profit margins. The video describes how the restaurant industry has resorted to price wars to stay afloat, with major brands offering significantly reduced prices to lure customers, which can lead to a race to the bottom and potential long-term damage to the industry.

💡Vicious Cycle

A vicious cycle is a series of events where each event amplifies the next, leading to an overall negative effect. In the context of the video, it refers to the cycle of restaurants engaging in promotions to attract customers, only to find that they lose money in the process, and then needing to engage in more promotions to stay afloat, which further exacerbates their financial difficulties.

Highlights

Beijing Longo Plaza, once ranked seventh in annual revenue among malls in Beijing, now sees a significant decrease in foot traffic and business.

More than half of the restaurants at the plaza have changed, with many closing down and no new tenants to replace them.

Popular restaurants that once had long waiting lines are now closed, reflecting a broader decline in the dining scene.

The fundamental reason for the business struggle is identified as reduced demand and an overall economic downturn.

Famous Chinese restaurant brands like Kujū and 238 R&B are reporting significant financial losses.

High prices and poor taste have led to the decline of brands like Tianjin Goubuli, causing store closures.

Dong Shun, known for its lamb hot pot, now operates with an occupancy rate of less than 70% at most locations.

Consumers are opting for more affordable dining options, leading to a decline in high-end restaurants.

In 2023, there was a surge in restaurant openings across China, with 3.18 million new registrations and 1.4 million closures.

The economic downturn has led to business closures, layoffs, and unemployment, affecting the restaurant industry.

High rent costs are a significant burden for restaurant owners, with many working just to cover their leases.

Landlords prefer to keep stores closed rather than lower rents, as it would be difficult to recoup their high property investments.

People are cutting back on spending in all areas except food, leading to a shift in the types of restaurants occupying mall spaces.

Statistics from the Beijing Bureau show a significant year-on-year decrease in revenue and profits for large-scale restaurants.

Full Service restaurants and Beijing saw a 10% drop in revenue, with collective losses reaching 76.5 million R&B.

The restaurant industry in Beijing is facing tough times with a profit margin as low as 0.37%.

The wave of closures in the restaurant industry is not limited to Beijing but is happening across China.

The restaurant business has become very straightforward: high prices mean no customers, affecting both high-end and low-end establishments.

Price wars in the industry are intensifying as establishments lower prices to attract customers, but this is not a sustainable strategy.

Many restaurant giants have lost everything and quietly exited the scene, with some reporting losses in the hundreds of millions of R&B.

The economic downturn is affecting not just restaurants but also hotels, with many facing closure or bankruptcy.

The wave of closures extends to popular tourist destinations, with homestay prices plummeting due to reduced tourist numbers.

Economic uncertainty is leading even the wealthy to cut back on spending, affecting the overall consumer market.

Transcripts

do you know why business is so hard

these

days just look at this a huge Mall Prime

floors a brand named clothing store with

thousands of square feet and I've only

seen two people inside both of them sta

right now I'm at Beijing Longo Plaza at

its peak it's ranked seventh in annual

revenue among malls in Beijing I used to

be a regular at the restaurants here

today when I came back I noticed that

more than half the restaurants have

changed see that boarded up section over

there it used to be jungu hot poot a

well-known chain back in the day you

absolutely had to wait in line during

meal times and it wasn't just this place

every restaurant I remember had long

waights but now they've all closed down

what's more there's no new tenant

advertised on that board which means the

space is still vacant in the past if a

place closed down another business would

move in almost

immediately the ones that haven closed

are barely holding on

probably because their leases haven't

expired yet things are tough last time I

was here there weren't as many

closures over by the street there's a

place that used to be really popular but

it's closed down now and likely pulling

out

completely this whole area used to be

filled with snack shops but they've all

shut

down it's really tough there are just so

few people here and this is the weekend

during meal time no less back in the day

even on weekdays it wasn't this empty I

remember coming here on a weekday and

struggling to find a parking spot like

it was a

pilgrimage now you come on the weekend

and you could practically Park sideways

even downstairs at he T there's no line

anymore I remember back then getting a

he te took at least 2 hours now you can

get one right

away the Blogger concluded that the

fundamental reason business is

struggling is due to reduced demand and

an overall economic downturn kuju a

famous Chinese restaurant brand reported

a loss of 260 million R&B last year even

the 238 R&B pecking duck isn't selling

anymore this 157 year-old iconic Chinese

brand is sinking deeper into financial

trouble another well-known brand tianin

GOI charged 120 R&B for a basket of buns

and 58 R&B for a plate of peanuts due to

these sky high prices and poor taste it

has gone from gboi meaning dogs don't

care to ruli meaning people don't care

its stores are closing down one after

the other as for dong shun famous for

its lamb hot pod most of its locations

now have an occupancy rate of less than

70% this is the current state of the

restaurant industry in Beijing people

don't have much money anymore so they've

downgraded their spending and are no

longer willing to pay for brand name

premiums some analysts suggest that the

wave of closures in the restaurant

industry especially among high-end

restaurants isn't just due to reduced

spending blind expansion and excessive

rental costs are also major factors in

2023 there was a surge in restaurant

openings across China that year 3.18

million new restaurants were registered

while 1.4 million shut down double the

number from 2022 many Chinese restaurant

Brands set ambitious 10,000 store goals

but behind this frenzy of expansion was

a misjudgment of the speed of economic

recovery after pandemic restrictions

were lifted as the real estate market

collapsed the stock market tumbled

businesses folded and waves of layoffs

and unemployment surged the Steep

economic downturn made it inevitable

that these newly opened restaurants

would face losses closures or vanish

entirely additionally high rent costs

have turned countless restaurant owners

into laborers working just to pay their

landlords for example in Shanghai a

noodle shop owner has to sell 100 bowls

of noodles a day just to cover the rent

and 150 bowls to start making a profit

after 6 months most of the income has

gone to the landlord this situation is a

snapshot of the struggle faced by

restaurant owners Nationwide although

property prices have dropped commercial

rents continue to rise in the first half

of this year rents increased on 69% of

shopping streets in first tier cities

and 58% in second tier cities most store

owners facing these high rents find it

hard to stay afloat even without rent

increases so why do so many landlords

prefer to see their stores Clos rather

than lower the rent the reason is simple

because they bought the properties at

high prices lowering rent would make it

nearly impossible to recoup their invest

m a blogger mentioned that when they

returned to Beijing earlier this year

the most striking change was how much

emptier the city felt almost all the

nearby malls were half empty half the

stores were vacant and the number of

shops selling clothes shoes and bags was

dwindling while restaurants were taking

over most of the mall spaces this

indicates that people are cutting back

on spending in all areas except food and

when they do eat out they're opting for

small affordable restaurants high-end

dining has already been pushed out of

the daily consumption habit of many

Chinese people this trend is now

reflected in the latest data from the

restaurant industry according to the

Beijing Bureau statistics in the first

half of 2024 the revenue of large scale

restaurants in Beijing reached 49.2

billion R&B a year-on-year decrease of

2.9% meanwhile total profits stood at

180 million R&B an 89% year-on-year drop

with a profit margin as low as

0.37% looking at restaurant categories

revenue from Full Service restaurants

and Beijing dropped by 10% year on-ear

in the first half of the Year among the

2,100 full service restaurants which are

the backbone of the industry Collective

losses reached 76.5 million R&B other

types of restaurants lost 23.2 million

R&B Fast Food Services posted a profit

of 240 million R&B down 50% year on-year

while profits from beverage and cold

drink Services drop even more

drastically down 86% year on-ear other

sectors including fast food food

beverage and cold drink Services food

delivery and catering services saw

Revenue growth however behind this

Revenue growth was a sharp decline in

profits the restaurant industry's

profits have plummeted by 88% this isn't

happening just anywhere it's in Beijing

the city where wealth and power are most

concentrated in China in a country like

China where social connections are

crucial almost every business deal

requires dining out sometimes even more

than one meal so if even the large

restaurants in Beijing are struggling to

make money you can imagine the state of

the restaurant industry in other cities

across the

country a profit margin as low as

0.37% isn't just a tough business it's

practically charity work a restaurant

owner in Beijing mentioned that while

this year's Revenue hasn't declined

profits have dropped by about half

compared to last year pushing them to

the brink of unsustainability Wang guu

the owner of nanang xang stated that in

2024 their store sales are lower than

last year and profits are also on the

decline n Chen xang a fast food chain in

Beijing had 129 stores as of October

2022 all directly operated within the

city in 2023 the chain added over 70

more locations in Beijing to cater to

the trend of downgraded consumption they

introduced highly affordable options

like a 3 R&B breakfast and a 1999 R&B

small hot pot there was once a media

report stating that in beijing's

restaurant scene people say every time

Nan Chang xang opens a new store five or

six nearby family-owned eateries close

down many restaurant owners near Nang

Shang admit opening near Nang Shang does

affect our business it's just a truth

wangu has faced pushback from beijing's

fast food industry in a Doan video he

revealed that many restaurants when

signing lease agreements include a

clause that says nanang xang is not

allowed to open here a Korean restaurant

owner remarked that regular eateries

cannot compete with nanang Shang whether

in terms of menu updates or pricing

however local businesses are still

trying to fight back many neighborhood

shops have had to lower their price to

compete with Nang Shang hoping that

discounts will help bring in more

customers unfortunately the results so

far have been limited compared to

high-end restaurants which have been

forced to introduce cheap meal deals

Nang xang seems determined to drive all

small and mediumsized eateries out of

business however this endless price

cutting strategy is not sustainable

recently wangu candidly stated in a Doan

video the money we made in the first

half of the Year might be completely

wiped out by winter so businesses need

to prepare in advance close what needs

to be closed if the restaurant industry

in Beijing is grim then Shanghai

situation can only be described as

catastrophic according to Shanghai

Bureau statistics in the first half of

2024 large scale hotels and restaurants

generated 75.3 billion R&B in Revenue a

year-on-year decrease of 2.6% while

operating profits plummeted to negative

770 million R&B this is a stark contrast

to the 1.7 billion R&B profit reported

Ed in the same period last year in May

of last year Shanghai had 2,700

restaurants where the average per person

spending was over 500 R&B but by July of

this year fewer than half remain in

business even more shocking many of

shanghai's top tier prestigious

restaurants have shut down some

landmarks of high-end dining in Shanghai

have all closed Bund 18 had an average

spending of 1,580 R&B per person the

topsan restaurant minglan had an average

of 2,300 R&B Sushi Shin at bn27 was

averaging 2,000 R&B Yuzu Lin averaged

1,900 R&B the Michelin two-star Nordic

restaurant reefer had 3,000 R&B average

also shuttered are the upscale bar core

aning West Road with its worldclass

bartenders and the Michelin three star

restaurant Opera typically restaurant

businesses need to maintain a profit

margin of 5 to 10% if it drops below

that they may face Financial strain and

in more severe cases cash flow problems

that could lead to bankruptcy industry

insiders in Beijing have told the media

that current profit margins are nowhere

near enough to support normal operations

many restaurant owners are now facing

critical decisions about weather to shut

down even chain restaurants must close

their unprofitable locations to stay

afloat the restaurant industry is

entering an era where big fish eat small

fish and single brand or smallscale

businesses will find it harder to

survive currently many small restaurant

owners are barely staying afloat even

while losing money in one video a

blogger visited a small eery that uses

the mwan delivery platform the Blogger

asked the owner for this 47.5 R&B order

how much do you actually make the owner

responded 31.9 R&B shock the Blogger

asked so the platform takes the rest and

you still have to pay the delivery fee

for the driver the owner replied of

course we lose two R&B on every order we

take the Blogger stunt asked

you're losing money why are you even on

M the owner answered they control the

mainstream market we don't have a choice

another food industry blogger noted that

the restaurant sector is highly

competitive right now if you do group

buying your store will be packed but you

lose money if you don't your store will

be empty and you'll still lose

money in this current environment

competition in the restaurant industry

is extremely Fierce if you don't engage

in promotions your business will

gradually dry up but once you're in it

becomes a vicious cycle that's hard to

escape a shop owner I spoke with told me

that they launched a group buying deal

and sold over 400 sets in a short time

working around the clock like it was a

war but after doing the math they found

that they had lost 16,000 R&B so they

had to take the deal down however

without the group buying promotion

business at their hotspot restaurant

went silent what could they do they had

no choice but to launch new group buying

deals and keep pushing forward so just

how tough is it for China's restaurant

industry right now according to tianyan

Cha data in the first half of this year

1.35 million new restaurants were

registered in China while 1.06 million

were deregistered or have their licenses

revoked this means that for every new

restaurant that open nearly one closed

down industry insiders say the

restaurant business has become very

straightforward if your prices are too

high no one will come regardless of

whether you're running a high-end or

low-end restaurant in an effort to get

people to dine out the industry's price

Wars are becoming increasingly Fierce

last month the average customer spending

at Tha 's pickled fish restaurant

dropped from 80 R&B to 69 R&B returning

to prices from 7 years ago Heidi Lao

wasn't far behind launching the Shia

High hot pot with Bas soup starting at

just 9.9 R&B in single person meals

priced at 49 R&B shun G went even

further offering four items at special

price

rolling back to 2008 pricing levels if

you don't cut prices your business will

collapse immediately but joining the

price War doesn't guarantee survival

either those with capital can grit their

teeth and stay in the fight those

without Capital often have no choice but

to close down in this Fierce competition

many restaurant Giants have lost

everything and quietly exited the scene

for instance the restaurant chain Shabu

Shabu reported a loss of 260 million R&B

with net profits plummeting nearly 133

times Nishu T is expected to report

losses of 420 to 490 million R&B

Shanghai entrepreneur juli Ren commented

restaurants are like the last hrah for

China's physical economy now that

restaurants are going under it seems

like the entire Chinese economy is

nearing its end for the over 20 million

workers in China's restaurant industry

tough times may still be ahead some

predict that a large wave of Hotel

closures will hit China in the second

half of this

year already we're seeing signs of this

even before the summer holidays have

ended many Hotel owners can no longer

hold on and have surrendered in just the

past few days I've received messages

about more than a dozen hotels being up

for sale I'm on my way to check out one

of these hotels right now this year has

been incredibly tough in fact the wave

of hotel closures began some time ago a

hotel supply store owner

said so many hotels have gone out of

business this year that even though

selling Hotel supplies can't keep going

we just acquired the inventory of a

hotel that closed down thousands of

brand new plates and dishes we're

practically giving them away and this

rice cooker which you might think is

expensive because it's brand new I'm

selling for just 20

R&B the owner went on to list many Hotel

supplies all being sold at extremely low

prices for example a four-door

refrigerator with cooling on top and

freezing on the bottom used to sell for

1,80 R&B secondhand now a brand new one

is only 1,180 R&B there are also

cabinets trolleys wine glasses ashtrays

shelves vacuum cleaners stainless steel

sinks all brand new all being sold for

next to

nothing a seasoned Hotel industry

influencer recently said that in the

next 3 to 5 years up to 50% of Hotel

owners May face closure or bankruptcy I

don't think this is an exaggeration just

look at the hotel Market this year

especially from mid August until now and

you'll understand just how cold this

winter might be for the hotel

industry the wave of closures in the

restaurant and hotel Industries is not

limited to major cities like Beijing and

Shanghai it is happening across China

including in popular tourist

destinations

in the past places like do and ni Jang

were the go-to vacation spots for the

middle class during holidays these areas

were packed with visitors and the prices

of accommodations especially hom stays

would Skyrocket but now with the

economic downturn downgraded consumption

and reduced tourist numbers home state

prices are

plummeting I'm from chonging and I run a

guest house here by igh Lake in di right

now I've lowered the prices for all the

rooms in this building to the lowest

they've ever been do you see any cars on

the road no right occasionally one might

pass by but there are no people not a

soul in sight the rooms are empty and

the pressure of that is immense there

are no guests and the owner of a guest

house in Li Jang is worried about it

going out of

business hi I'm wo and I run a guest

house in Le Jang Oldtown currently I

have four guest houses in Le Jang the

off season has arrived

and now most of the rooms are empty this

year's peak season ended in the blink of

an eye for the next few months the rooms

will mostly be vacant if this continues

the guest house will go under even

though I only have 10 rooms the daily

cost is around 1,000 yen so right now

we're losing money every day a resident

of Beijing mentioned that the city's

economy is clearly declining after the

pandemic restrictions were lifted there

was a wave of closures especially this

year with many people losing their jobs

JS one video blogger Revisited the bong

World Trade Center in Beijing after 10

years and was struck by the difference

10 years ago it was bustling with people

but now it's eerily quiet a far cry from

its former glory this is a large

shopping mall in the suburbs of Beijing

despite its vast space it's early empty

with everything you could need except

people just a few years ago this place

was bustling with life but not anymore a

Beijing resident commented that big

malls are now mostly deserted with few

Shoppers around they share their

experience of visiting a large

Supermarket on New Year's Eve and seeing

only a handful of people a stark

contrast to the packed crowds of the

past a supermarket worker in Beijing

echoed these sentiments saying business

is tough with Fierce competition if

prices are high customers won't buy but

if prices are lowered there's no profit

many businesses are closing down under

this pressure Mr ch a Beijing resident

shared they has been unemployed for 2

years and has observed that there are

very few job openings now the overall

environment is poor with many commercial

spaces uper rent and businesses closing

down in some areas almost all the shops

have shut down their doors leaving only

a few still operating Mr chai estimates

that about half the people he knows are

unemployed and many are struggling so

why aren't even the wealthy spending

anymore when the economy enters a

downturn and uncertainty about the

future grows even the wealthy start to

cut back on spending a 40-year-old white

collar worker in Beijing explained that

despite having a stable job inside

businesses the uncertainties of Life

have led her to reduce her spending

every day something new happens one day

they adjust Social Security the next

there's talk of a new housing tax then

the stock market takes a hit my sense of

security has plummeted I don't know when

the next blow will come so I've had no

choice but to start spending less she

said

[Music]