China’s Economy in Deep Trouble, People Facing Increasing Hardships

China’s economy continues to decline, and its impact on people’s livelihoods is increasingly evident. From the coastal province of Guangdong to the inland region of Gansu, residents from different areas are all indicating that the economy is worse than ever before. Business closures, wage arrears, and difficulty in finding jobs have become the norm, making life increasingly difficult for many ordinary people. Interviewees from various regions unanimously agree that the current economic situation is severe, and they have shared their struggles and concerns with journalists.

Mr. Zhang, a resident of Dujiangyan City in Sichuan, expressed that the economy is in a very bad state, worse than ever before. Many factories have shut down, and the lifespan of restaurants is very short. The only businesses doing better now are those acquiring second-hand equipment from closed restaurants. Although starting a restaurant has a low threshold, many cannot sustain operation for long and end up closing.

He noted that wage arrears by companies are common now, leading to financial difficulties for many families. Growing up in poverty as a child of the 60s, he recalled the dire conditions in China at that time, but despite the current poor economic situation, his generation has adapted. In contrast, the post-2000 generation was born during China’s high economic growth period, enjoying a better life initially; however, with the current downturn, their living standards have regressed, leading to strong reactions.

Mr. Wang in Jiangmen, Guangdong, also feels the pressure of economic decline. Local restaurants, teahouses, and large restaurants are closing down, and factories are struggling to survive. He used to work in a factory but has now transitioned to being a freelancer due to the challenging circumstances.

Mr. Yuan from Fuyang, Anhui, mentioned the unfavorable economic conditions. Many companies are laying off employees, increasing workloads for those remaining without raising wages. With people having little money in their pockets, consumer markets have shrunk, leading to restaurant closures. Yet, the government seems indifferent to the plight of ordinary citizens.

The rising unemployment rate has become a nationwide issue, making it exceptionally challenging for many young people to find jobs. Mr. Chen in Guangdong, working in the education and training industry, expressed that the current economic situation is extremely poor, affecting almost all sectors. Observing factories unable to pay salaries, high youth unemployment rates, and the struggle to secure new jobs, he noted a decline in purchasing power, making life difficult for ordinary people and impacting various industries.

Mr. Chen remarked that the education and training industry he works in is also sluggish, with everyone feeling despondent.

Mr. Qi, a teacher at an art education institution in Shanghai, mentioned the current dire economic situation, especially the poor performance of the real economy. Many are facing financial strain, making life very challenging.

He highlighted how he used to earn twenty to thirty thousand yuan monthly, but due to a sharp decline in student numbers, his income has significantly dropped. Many of his past students who ran companies have closed down, leaving unpaid tuition fees.

He explained that the downturn in the education sector is due to its low entry barriers, leading to numerous institutions and profit sharing. Additionally, parents used to enroll their children for one to two years upfront, but now they sign up class by class, discontinuing after a while. This has resulted in low wages for many industry workers, intensifying operational pressures.

Mr. Zhang in Wuwei, Gansu Province, described the situation in his small city, where opportunities are scarce, and people are earning less money.

He pointed out the monopoly of state-owned enterprises in industries like electricity and tobacco, ensuring their stability. Teachers and civil servants also enjoy salary security.

Mr. Zhang mentioned the robust nature of Northwestern people, with the government fearing that failure to pay wages could lead to social unrest, risking “mutiny.”

The economic downturn not only affects individual incomes but also has far-reaching impacts on social structures. The marriage rate among young people has significantly declined. Mr. Wang from Jiangmen, Guangdong, observed that there are too many divorces now. Young people are reluctant to marry, and elders neither push them to wed nor have children, a peculiar phenomenon.

Having a traditional value of passing on the family line, Mr. Wang worries about a future without descendants, raising concerns about China facing a more severe population crisis.