Shanghai’s Truly Done This Time! 12,000 Businesses Left in the First Half, 5 Million Unemployed Fled
Summary
TLDRThe 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
📺 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.
🛍️ 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.
🌐 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.
🏙️ 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.
Mindmap
Keywords
💡Live Streaming
💡Salary Cuts
💡Economic Downturn
💡Job Security
💡Pandemic Impact
💡Urban Decline
💡Consumer Market
💡Foreign Investment
💡Manufacturing Decline
💡International Openness
💡Economic Outlook
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
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