There are no people in Beijing, the subway is empty!

Summary

Beijing and Shanghai, once thriving economic hubs, are facing a severe downturn. With rising job scarcity, low wages, and high living costs, many people, especially the younger generation, are struggling. The job market is highly competitive, with many forced into temporary, low-paying roles. High vacancy rates in offices and numerous business closures reflect a broader economic stagnation. Consumer spending is down, and even popular landmarks and shopping districts are seeing diminished foot traffic. The economic challenges in these cities signal a troubling future for workers and businesses alike.

Takeaways

• 😀 The population in Beijing has been steadily decreasing, with fewer people on the streets and in subway stations in 2024 compared to previous years.
• 😀 Job opportunities in Beijing are scarce, with many positions offering low wages, especially in sectors like food delivery and designated driving.
• 😀 The cost of living in Beijing is high, with rent and daily expenses consuming most people's incomes, leaving little for savings or discretionary spending.
• 😀 Many businesses, especially in the catering industry, are struggling or closing down. Beijing's restaurant sector has seen an 88.8% year-on-year profit decrease in 2024.
• 😀 Office vacancy rates in Beijing have reached record levels, with some districts like Tongzhou seeing a vacancy rate of 65%.
• 😀 Consumer activity in Beijing has dropped, with fewer people visiting shopping malls, restaurants, and entertainment venues like Universal Studios.
• 😀 The rise of e-commerce has severely impacted physical retail stores, leading to the closure of many well-established businesses in Beijing.
• 😀 Young people in Beijing are facing a tough job market, with many turning to temporary or low-paying daily wage jobs just to survive.
• 😀 The economic decline in Beijing is also reflected in rising unemployment rates and the migration of workers, particularly young professionals, to smaller cities or abroad in search of better opportunities.
• 😀 The financial struggles in Beijing are compounded by the increasing cost of goods, such as food and everyday essentials, making life more difficult for residents.
• 😀 The economy in Beijing and other major Chinese cities, like Shanghai, is showing signs of recession, with fewer businesses, lower wages, and less consumer spending.

Q & A

Why is Beijing experiencing a population decline in recent years?

Beijing has faced a population decline for six consecutive years due to factors like high living costs, difficulty finding jobs, low salaries, and limited opportunities for career advancement. Many workers are struggling to cope with the economic pressure, leading to fewer people living and working in the city.

What are the main reasons for the economic downturn in Beijing and other major cities in China?

The economic downturn in Beijing and other cities is primarily caused by high unemployment, wage cuts, and rising living costs. Many companies are facing financial difficulties, leading to layoffs and job insecurity. Additionally, there is a lack of consumer spending, contributing to the closure of businesses and a slowdown in the economy.

How has the job market in Beijing changed in recent years?

The job market in Beijing has become more competitive and difficult to navigate. Many positions are concentrated in low-paying fields like sales and food delivery, and salaries have dropped significantly. Job seekers are facing increasing challenges, with some reporting high costs associated with job hunting, including transportation and meals, without securing stable employment.

What impact has the economic situation had on Beijing's service and retail industries?

Beijing's service and retail industries have been severely affected by the economic downturn. The catering industry, for example, has seen massive profit declines, with many restaurants closing down. The city's shopping malls, restaurants, and entertainment venues, such as Universal Studios, have reported significantly lower foot traffic, with some malls and commercial areas closing altogether.

Why have many businesses and shopping malls in Beijing closed or struggled to stay open?

Many businesses and shopping malls in Beijing have struggled to survive due to the declining consumer purchasing power and rising operational costs. With e-commerce on the rise and physical stores facing stiff competition, many well-known brands and long-established shopping malls have closed or downsized significantly.

How are young people in Beijing coping with the tough job market?

Young people in Beijing are increasingly turning to temporary, daily wage jobs to make a living. Many college graduates are facing unemployment and are forced to rely on part-time work in fields like construction, food delivery, and cleaning. They often gather at labor markets early in the morning to compete for limited opportunities.

What is the situation like for workers in the Mauk labor market in Beijing?

The Mauk labor market, one of the largest in northern China, has seen an influx of young, educated individuals competing for low-paying, temporary jobs. Wages for these jobs are generally low, and many workers are living in poor conditions, such as sharing dormitories or even sleeping on the streets to save money. Despite their efforts, wages have decreased, and the cost of living in the area has risen.

How have the high vacancy rates in Beijing's office buildings reflected the current economic conditions?

The high vacancy rates in Beijing's office buildings, particularly in districts like Tongzhou, indicate a sharp decline in commercial activity. As businesses reduce operations or close entirely, office spaces have become less in demand, signaling broader economic stagnation and a lack of confidence in the city's economic recovery.

What role has the high cost of living in Beijing played in driving people away?

The high cost of living in Beijing, particularly the exorbitant rental prices, has made it difficult for many people to sustain themselves. Low-paying jobs and the inability to afford basic necessities like housing and food have led to many individuals leaving the city in search of better opportunities elsewhere.

Why has Beijing's catering industry experienced such a dramatic collapse in 2024?

Beijing's catering industry has faced a dramatic collapse due to declining consumer spending, especially in the first half of 2024. With many people avoiding restaurants due to financial constraints, the profit margins of catering businesses have sharply declined. The industry's profits fell by nearly 89%, highlighting the severe economic strain on businesses reliant on consumer spending.