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.