“北京人稱北京蕭條肉眼可見” – “No Festive Atmosphere, No Energy: Beijing Residents Describe Visible Downturn”

After the Lunar New Year, the downturn in Beijing has become a hot topic, with discussions ranging from the top ten changes observed by young migrants in Beijing to the nostalgia of old Beijingers who lament the lack of festive atmosphere and vitality. Experts analyze that the two main reasons for Beijing’s downturn are economic decline and a decrease in population.

Recently, an original article titled “The Visible Downturn in Beijing” circulated online, resonating with netizens. The article documented the author’s journey taking bus route 988 to the National Tax Office located in Wangjing Village in the middle of the day, passing through Chaoyang Park, Jiuxianqiao, and Wangjing along the way. The author expressed the desire to “slow down and observe the life around me.”

The article described how the northern winter naturally brings a sense of gloom, with the uniformity of signage making it hard to distinguish directions, likening Beijing more and more to a county town. Observations were made about the sparse flow of people in embassy districts, a decrease of over 40% in the foreign population residing and working in Beijing, leading to the shrinkage of corresponding commercial areas. Areas like Jiuxianqiao have seen little change over decades, with old houses housing residents in dilapidated conditions becoming unexpectedly vibrant hubs.

Wangjing Village appears deserted with empty streets and restaurants, devoid of even a bird in the air, yet towering futuristic buildings stand tall in the background. During weekdays at lunchtime, even the internet virtual users who come out for a meal break are few and far between.

In May 2024, Alibaba’s Beijing headquarters complex saw 19,000 employees relocated from Wangjing, followed by Momo’s approximately 1,000 employees by the end of 2024. Other companies like Panda TV and Meilishuo also chose to relocate, taking away the most vibrant demographic of young people aged 25-35. The departure of internet companies has resulted in a significant exodus of talent. The author also noted the luxury tax hall being surprisingly devoid of people, reflecting the overall decline.

Last January, there were reports circulating online about Beijing’s downturn, with videos from Wangfujing Street showcasing sparse crowds, deserted markets, and empty shopping malls. However, the article was quickly removed.

Online, many netizens acknowledge Beijing’s downturn as an undeniable reality. Comments reflected observations like “During rush hours in Wangjing East, it’s congested, but the rest of the time, you hardly see anyone. Economic prosperity depends on consumer activity, but with deserted hotels and shopping malls, the overall situation is unlikely to improve.”

A long-term resident of Beijing shared insights into the city’s transformation, noting a shift towards brown-bagging lunches among white-collar workers, decreased job-hopping discussions and an increase in overtime talks, stagnancy in the real estate market, closures of commercial complexes, significant drops in office rental prices, ease of affordable taxi rides due to driver hardships, and a surge in delivery services due to excessive competition in the job market.

Beijing is said to be experiencing a broader economic downturn, not isolated to just the region but including other first, second, and third-tier cities in China as well. Factors like aging demographics, reduced birth rates, controlled migration policies, along with various external pressures have contributed to the city’s economic decline, resulting in a somber socio-economic environment.

A report by the China Real Estate Research Association reveals a continuous decline in the proportion of migrant populations to Beijing’s total residents for nine consecutive years. With strict population controls and residency policies, the migrant population ratio decreased from 39.53% at its peak in 2014 to 37.70% by the end of 2023.

This economic trend is not unique to Beijing but reflects a nationwide shift in major cities. The repercussions of reduced spending capacity among citizens have led to market stagnation, with fewer travelers on high-speed rail and flights, and deserted markets in many areas, resulting in a lifeless economic landscape.

In light of these developments, experts recognize a tangible collapse in the economy, exacerbated by external factors like the pandemic, real estate and manufacturing sector crises, along with dwindling foreign investments. These economic stresses have translated into a lack of optimism for the future, reflecting a wider climate of uncertainty and stagnation across society.