Real footage of China's economic misery: Homeless young people sleep everywhere on the streets

Real footage of China's economic misery. Homeless young people sleep everywhere on the streets. In the past, many large factories settled in Shenzhen and Guangzhou, creating numerous employment opportunities, and making Shenzhen the third largest city after Beijing and Shanghai. However, Shenzhen's economic situation has worsened, with many people now sleeping on the streets and in front of the station. Official figures released by the Chinese Communist Party show that the number of newly registered unemployed residents in Shenzhen in the first quarter of this year increased by 40% year-on-year and 15% from the fourth quarter of last year. According to the South China Morning Post, this unemployment statistic may be incomplete, as many laid-off workers haven't been recorded or reported, meaning the official number may represent only a portion of the unemployed. Furthermore, the 2024 College Student Employment Research Report, released by the China JiaoPin recruitment platform, shows that as of mid-October, only 38% of graduates received informal employment notices. A survey by Guangdong University of Technology revealed an employment rate of just 41% for this year's graduates, meaning as many as 60% are unemployed. A recent viral video shows a large number of people, including children, sleeping in the square in front of Longhua bus station in Shenzhen, Guangdong. Chinese netizens believe most of these individuals came from rural areas seeking work, but with jobs scarce and no extra money for basic accommodations, they are forced to sleep on the streets, waiting for opportunities. Some netizens pointed out that this scene occurred as early as last year, and the tragic situation has worsened dramatically this year. Young people across China are sleeping on streets, in pipes, and underground passages. Even cinemas have become makeshift sleeping places. While youth are often associated with vigor and fashion, China's economic decline has left many young people sleeping on the streets due to job scarcity. In July 2024, many people slept in Longhua bus station square in Shenzhen. The video shows numerous individuals sleeping on the ground, with many young people sitting in the square, playing on their phones. The video subtitles read, This year's unemployment rate is higher than in previous years. In previous years, there weren't as many people wandering and sleeping on the streets. This year, sleeping on the ground can be seen everywhere in stations, parks, and squares. It's clear how difficult it is to find a job this year. Some netizens say it will get even harder in the future, with possibly no work at all. It's terrifying to think about. A netizen also posted a photo of a child sleeping near Longhua bus station, showing a young man sitting on the ground, sleeping on his arms. On June 29, 2024, a netizen named Truth Media posted on Twitter that on June 25, young people were sleeping under a bridge waiting for recruitment letters from factories. They mentioned that Jiangsu province is now full of stranded students, competing for hourly wages of just 13 to 14 yuan. The number of young people sleeping on the streets has risen in recent years, as China's economy continues to decline. Many factories in Guangdong have closed, leading to widespread job losses and forcing people to live temporarily on the streets. According to incomplete statistics, unemployment, bankruptcy, and homelessness in major Chinese cities such as Shanghai, Beijing, and Chongqing are similar to what has been recorded in Shenzhen. Hundreds of major Japanese and Taiwanese corporations leave China over fears of being held hostage. Faced with growing threats from Beijing, Japanese, Taiwanese, and other companies are now accelerating their exit from China. On July 23, Japan's Nippon Steel announced that it would end its 20-year joint venture with China's Baosteel. The contract will expire at the end of August. Nippon Steel has found it difficult to expand its business in China and plans to shift investment to India and the United States. Nippon Steel also stated that it plans to sell all of its shares in the joint though the sale will require regulatory approval. During the joint venture, Nippon Steel sued China's Baosteel in a Japanese court in 2021, accusing the Chinese side of stealing Japanese patents on electroplated steel sheets, which China supplies to Toyota for electric vehicles. The case is still ongoing. This is a typical example of foreign companies rushing to withdraw from China. On July 12, Japanese construction machinery manufacturer Kato Works announced the dissolution and liquidation of its subsidiary that produces and sells hydraulic excavators in Kunshan, Jiangsu. Construction machinery company Kato Nakajima also announced that it would liquidate in August to exit the Chinese market. This trend is spreading from the manufacturing sector to the beauty products sector, with high-end skincare brands such as Shiseido also announcing their withdrawal from the Chinese market. Shiseido's flagship stores in China have recently stopped accepting new orders and have begun to close. Another Japanese company, Bridgestone, has also announced its withdrawal after more than 20 years of operations in China. Bridgestone has ceased producing and selling commercial tires in China and will likely focus on high-performance passenger tires. According to public information, in the past year, most of the globally renowned companies leaving China have been Japanese. These include manufacturing plants of Canon, Sony, Toshiba, and Nikon. Other companies that have exited China include Amazon, LinkedIn, and the R&D center of Estella's Pharmaceuticals. These companies have moved their supply chains to Thailand, the Philippines, or back home. Taiwanese Companies Face Threats from China and Seek Refuge in Other Ways Faced with threats from the Beijing government, Taiwanese companies are now seeking refuge in various ways. French media have expressed concern that China's hegemonic ambitions toward Taiwan have made Taiwan's leading technology companies worry about the worst-case scenarios. As a result, some companies are considering setting up a second headquarters outside Taiwan. Taiwanese companies have long outsourced a large part of their production. Foxconn, the world's leading computer equipment manufacturer and a subcontractor for Apple, Amazon, and Microsoft, focuses most of its business in China but also operates in Europe, Brazil, and Mexico. TSMC, a semiconductor giant that manufactures for companies such as Nvidia and Apple, has just announced the construction of a second factory in Arizona, USA, with an investment of more than $65 billion, including $6.6 billion in subsidies from the US government. Singapore and the Netherlands are priority locations for Taiwan's semiconductor IC industry to expand its factories. The trend of foreign capital withdrawal from China has been a hot topic since 2023. Earlier this year, global asset management firm Knight Frank analyzed that this trend is still ongoing. To calm public opinion, China's Ministry of Commerce stated that the inflow and outflow of foreign capital are in line with market rules and that the narrative of foreign companies fleeing has been exaggerated and incited by external forces. Xinhua News Agency, the media outlet of the Chinese Communist Party, even criticized foreign companies for being foolish. Xinhua propaganda asserted that the best investment opportunities in the future still lie in China and that leaving China would only mean missing out on these opportunities. A commentator noted that the deteriorating business environment in China is driving foreign capital to leave, with many foreign companies moving to Southeast Asia, India, and even returning to their home countries such as the United States, Japan, and South Korea. These companies come to China to do business and make money, not to engage in charity work. A netizen named Trinh Thai Roas suggested that foreign companies are reluctant to leave China because of its well-established supply chain and cheap labor force. However, in the past three to five years, not only have the remaining 100 Japanese companies left, but also other companies from Taiwan, Korea, the US, Germany, the UK, and even some Chinese enterprises have withdrawn from China. Japanese camera giant Nikon shut down its subsidiary Nikon Imaging in China. The world's largest hard drive maker Seagate closed its factory in Suzhou. Suzuki withdrew all shares from two subsidiaries in China. Nitto Denko Group closed its Suzhou factory and withdrew from China. Apple assemblers plan to move production lines to Taiwan or Southeast Asia. In 2019, South Korea's Samsung Electronics closed its factory in Huizhou, ending phone production in China and shifting to India, Vietnam, and other Southeast Asian countries. Japanese office equipment company Ricoh moved its photocopier production lines to Thailand. KF sold its China business to SNH. In 2020, British supermarket chain Tesco announced that it would completely withdraw from the Chinese market. Dutch company Philips sold its home appliance business to Hillhouse Capital and exited the home appliance market in China. American clothing retailer Old Navy announced its withdrawal from the Chinese market and closed all its physical and online stores in the country. In 2021, Yahoo stopped providing products and services in China. Toshiba closed its last factory in Dalian. Japanese electronics manufacturer Oki ceased its printer and copier manufacturing operations in China. In 2022, Canon closed its factory in Zhuhai, moving production lines to Japan. South Korea's Lotte Group closed its last department store in China, dissolved its headquarters in China, and increased investment in Southeast Asia. Apple announced that iPhones would be assembled and manufactured in an Indian factory. In 2023, Sony moved its main factory to Thailand. Citibank left China. Supermarket group Carrefour left China. U.S. asset management giant Vanguard and performance consulting firm Gallup announced they would close their operations in China and leave the country.