Factories Gone, Shops Closed: Xiamen’s Tragic Collapse

Has anyone noticed that Xiamen is becoming less and less crowded? There are hardly any people on the streets. That's because everything in Xiamen is expensive, the pressure is too high, and salaries and benefits are not great. Parking spaces are costly, electric scooters are banned, and the authorities crack down on them every day. The metro monthly pass has increased from 120 RMB to 150 RMB. Second-hand landlords keep raising rents. So many people who went home for the Lunar New Year simply didn't return. Have you noticed this too? Since the 1990s, Taiwanese businessmen have been investing in China for over 30 years. Back then, China, with its low labor costs and other attractive factors, became a paradise for Taiwanese investors. Taiwan's technology and capital helped China become the world's factory. Many products labeled made in China were, in fact, produced by Taiwanese investments in China. However, good times don't last forever. As China's economy grew, business conditions deteriorated, labor costs soared, the US-China trade war disrupted supply chains, and the Chinese government's policies became unpredictable. Facing these challenges, Taiwanese businesses began withdrawing from China on a large scale, including from Xiamen. Today, let's talk about the current state of Xiamen. Xiamen, also known as Egret Island, Lumen or Luyu, was named after the large flocks of egrets that once inhabited the area. Among the first four special economic zones established by the Chinese government, Xiamen was the only one created with Taiwan in mind. Xiamen and Taiwan share the Minnan cultural and linguistic heritage, making Xiamen the top choice for Taiwanese businesses for many years. However, in recent years, with the departure of Taiwanese enterprises and foreign investments, hundreds of thousands of people have also left, leaving Xiamen in a bleak state far from its former prosperity. This year, Xiamen feels different. There are indeed fewer people, and those who remain seem to have entered an extreme state of low consumption. Reports say that flights from Xiamen to Shanghai are as low as 158 RMB, yet few people are flying. Even high-speed rail and bullet trains have nearly empty carriages. Even in Shanghai's busiest area, Lujiazui, you can now find meals with one meat dish and two vegetables for just 12 RMB. Many of our female colleagues bring their own lunch, and if they can take the subway or a bus, they won't drive. Looking at Xiamen's five Wanda Golden Streets, there are hardly any people, and half of the stores have shut down. Popular tourist spots like Zhongshan Road, Gulangyu, and Zhenkuoan are also unusually quiet. Even rental prices in Xiamen's urban villages have dropped, yet many places remain vacant. The Zhongshan Road, I remember, used to be packed with people, whether during the day or at night. There were both tourists and locals everywhere. But this time, why do I feel like so many shops have closed down? The storefronts are all shut, and even the signs have been taken down. Is this really the Zhongshan Road of Xiamen that I remember? Even this escalator has been out of service for a long time. Are there any locals here? When did this shopping mall start declining? Look down there. There used to be an underground mall, and now it looks like this. I'm truly shocked. Who is responsible for this? How could such a prime location like Zhongshan Road end up like this? Everything is closing down. Oh my God, is the economy really this bad? There's almost no one here. What is going on? Everything is shut down. How can this be happening? What's going on with Xiamen? Shops on the streets are closing, one after another, all of them. My God. I have to tell you about the real situation in Xiamen today. It's truly unexpected. Do you know that Xiamen's libraries are now almost always full? There are so many people inside, each with a laptop. Who knows if they're really working or desperately looking for jobs? Do you know how many people in Xiamen have lost their jobs this year? And where have all these unemployed people gone? Last year, reports still claimed that Xiamen's population was increasing, but this year it has clearly declined. Have you noticed? When you go out now, you see food delivery riders and Didi drivers everywhere, but I've heard that even they are getting fewer orders these days. Too many people competing for too little work. Many big companies are laying off employees, and even small business owners are considering becoming delivery riders. Nowadays, finding a suitable job in Xiamen that pays on time is already a big challenge. Don't even think about whether you get one or two days off a week. For now, just being able to survive is what matters most. Right now, I'm on Zhongshan Road, and the whole area feels eerily empty. There are countless shuttered shops. Given the current economic climate, we must plan our finances carefully, avoid unnecessary expenses, and hold on to our savings. In 1985, the first Taiwanese-invested company, Sante Xing, was established in Xiamen. During the 1990s, the number of Taiwanese businesses investing in Xiamen surged rapidly, and their financial strength grew even stronger. In 2006, AU Optronics, Taiwan's largest and the world's third-largest TFT LCD manufacturer, set up operations in Xiamen, drawing immense attention from other Taiwanese businesses. As an industry-leading company, AU Optronics attracted a wave of Taiwanese enterprises, including TPV Technology, TPK Holding, and Darwin Precisions, to establish their presence in Xiamen. These Taiwanese companies not only brought advanced technology and capital, but also spurred the rapid development of related upstream and downstream industries, gradually turning the integrated circuits sector into Xiamen's new economic pillar. In 2005, Xiamen's GDP surpassed 100 billion RMB for the first time and continued to rise steadily. By 2019, its GDP had reached 599.5 billion RMB. Among the four special economic zones, Xiamen still lagged behind Shenzhen, but it had a clear advantage over Zhuhai and Shantou. However, as China's business environment has worsened, many Taiwanese manufacturers and enterprises have been pulling out of the mainland, dealing a heavy blow to Xiamen. According to the U.S. Think Tank Center for Strategic and International Studies, CSIS, 57.4% of Taiwanese companies are either planning to or are already in the process of leaving mainland China. Why are Taiwanese businesses withdrawing from China? One reason is that after the U.S.-China trade war began, there was a risk of supply chain disruptions. As a result, more and more Taiwanese companies have been shifting part of their operations from China to South Asia and Central Asia, mainly India, or relocating production capacity back to Taiwan. Another reason for the withdrawal of Taiwanese businesses is the rising labor costs in China. Taiwanese businessman Liao Jinzheng had been doing business in China for nearly 30 years before returning to Taiwan two or three years ago. He recalled that when he first entered China in 1995, the base salary of an ordinary worker was only about 200 RMB per month. With overtime, they could earn 300 to 400 RMB a month, which was already considered a lot. However, by the time he left China 22 years later, the average worker's salary had risen to around 5,000 RMB. In just over two decades, wages had increased by approximately 25 times. The real turning point that made Liao Jinzheng decide to abandon the Chinese market was the Chinese Communist Party's CCP approach in recent years, prioritizing regime stability over businesses and economic development. He explained that China was not actually lacking electricity, yet in 2021, there were widespread power cuts. His factory had to stop operations for two to three days a week, and local authorities could not provide a reasonable explanation. Since this affected product delivery schedules, he began thinking about leaving. Then, in 2022, when the CCP enforced strict zero-COVID policies in Shanghai, Liao Jinzheng had a moment of realization. He said, The CCP is beyond saving. They've gone completely insane. He criticized the government for shutting down the country's economic hub, disrupting imports, exports, and logistics, which essentially froze the Chinese economy. What kind of government ignores the state of its own economy? What has Xiamen become now? Xiamen's economy is visibly deteriorating, and several drastic changes have taken place compared to previous years. First, rental prices have dropped significantly. Many rental apartments in urban villages remain vacant, unable to find tenants. Many second-hand landlords are now operating at a loss. Second, conversations about promotions, salary raises, and job hopping have become rare. In the past, people often complained about long working hours and wanted to switch jobs for better pay. But this year, friends are saying, If I have to work overtime, don't invite me to gatherings. I need to focus on saving money. Third, salary cuts and layoffs are widespread in Xiamen, making job hunting increasingly difficult. Finding a job that pays over 6,000 RMB per month with social insurance is tough, let alone one with two days off per week. A regular job that pays 5,000 RMB is already considered decent. Wages are nowhere near as high as some imagine. Fourth, Xiamen's housing market is crashing at an alarming rate. The decline seems unstoppable. In August last year, Xiamen's new and second-hand housing prices saw the steepest drop in the country. Due to the previous housing bubble, prices have now been slashed in half, and the situation continues to worsen by the day. Just having food is enough? Yes, I just need food for these two days, nothing else. Where are you from? Hunan. Why do you want to be so miserable? I can't find a job, so I want to come here to help for two days, just to have some food. After eating, I will have the strength to find another job. Haven't eaten? No, I haven't eaten for a day and a half. I will cook you a meal. I can do my work first. No, no, wait outside. Thank you. You're welcome. The restaurant owner later told the media that he noticed the man seemed to have a limp and that what he said didn't sound like a lie, so he cooked for him. He also told the man, If you don't have money to eat, come to my place anytime. I won't charge you. After all, it's not easy to be alone outside. This video moved and saddened netizens. Is it so difficult for young people to find jobs now? Others lamented, It's not that young Chinese people don't work hard, but it's getting harder and harder to survive. Sadly, this situation is now common in China. Many videos have been uploaded on mainland social platforms, showing people going to other places to find work, running out of money, failing to find a job, and fainting on the street from hunger. Some people are so hungry that they want to jump off a bridge. Hello brother, why do you live here? What do you want to do? Let's record it. We are here to help people like you. Have you encountered any difficulties? If not, how can you live here? It's so cold. How old are you this year? In your 20s? You can definitely choose to find a job. I can't find my ID card, did I lose it long ago? If you lost it, you can apply for a new one. I have been wandering for a while. I can't get the internet to work and I haven't found a job. I really have no other choice. Later, I thought about it and decided to pick up some bottles to exchange for living expenses. Picking up bottles is temporary. I think if I collect a few thousand yuan, I will go hiking. I have no other choice. Otherwise, I will really starve to death outside. Then what can you do here? Find a job. Find something to do. Then how many days have you been looking? I've been looking since today. Almost more than 10 days. Then where is your hometown? I'm from Henan. Henan. Brothers, if you come to Dongguan and have no place to live, don't panic. Look below. There are people living under the bridge. They live quite well. There are several guys living here. Look, there is still a person sleeping below. Brothers, if you come to Dongguan and have no place to live and no money to rent a house, don't panic. There are many bridge holes and many bridge bottoms in Dongguan where you can live. As long as you don't mind the poor environment, you can live anywhere. Seeing the current employment and living conditions of Chinese people is truly distressing. The mainland economy is in decline. And there are more and more unemployed people. The internet is full of wailing. Many people are crying while looking for jobs. They live in anxiety and confusion every day, not knowing where to go in the future. The current factory situation in Jiangsu, Zhejiang and Shanghai may not be visible to workers who have just started working. Why are so many workers pulling their suitcases back home? It is possible that you come here to work and support the vendors and landlords, but you can't support us workers. Not to mention support, there isn't even a job. If you want to talk about good jobs, there are none that pay more than 8,000 or 9,000 or even over 10,000. The only jobs available are the kind that recruit every day, every month and every year. A factory that used to be looked down upon, you have to stand while working, it's an assembly line and the dormitory is far away, now has people squeezing in at the door. Goodbye Zhejiang. I will never come to Zhejiang again. This sentence makes many people sad and reluctant to leave Zhejiang. Recently, hundreds of thousands of migrant workers stranded in Zhejiang have started choosing to go home because they cannot find suitable jobs. Many people go home every day because Zhejiang's good companies are no longer short of workers. I am a migrant worker who grew up in Hangzhou. I can barely make it. If the locals hadn't relied on demolition compensation, they would probably be eating pickles at every meal. What happened to Hangzhou? Wages haven't increased, but housing prices have fallen sharply. The price hikes can't be stopped. It costs hundreds of yuan to park on the roadside every day. I think it's only 150 yuan to park illegally. Brother, aren't you forcing us uneducated people to park randomly? Let's talk about the employment environment. I have a friend who wants to find a job with a salary of more than 5,000 yuan. He browsed the recruitment website for two months and couldn't find one. How miserable is it now? Behind unemployment is the visible economic downturn. A large number of companies have shut down, and street shops have closed one after another. Whether in manufacturing, service, or technology industries, wage cuts and layoffs have become common in China. The latest data released by the National Bureau of Statistics of China shows that both consumption and production declined in February, further highlighting China's severe deflationary pressure, which may have a greater impact on economic growth. My God, there are so few people here these days. I don't know why. Do you? How much did you make yesterday? I only made a little over 3,000 yuan, and the rent is 190,000 yuan. Look, I need to break even at 5,000 yuan a day. This is a lost day. I've been losing money these days. What's the situation? Every morning, I still go to work on time at 7 o'clock and get off work on time at 12 o'clock. Look at the store across from me. It hasn't opened yet. It closed at 8 o'clock yesterday and still hasn't opened. This business is really hard to run. March is supposed to be the busiest season. Today the governor comes. Tomorrow the mayor comes. But they won't let us do business. How can business survive like this? There's no one here. All the outsiders are poor. This year's business, I think, is quite difficult. Why? Because there are no people anywhere. You can see that there are no people in the communities, shopping malls, or even office buildings. Where have they gone? Have they returned to the countryside to retire? Or have they moved to a bigger city to develop? Can anyone tell me where all the people have gone? This business is really hopeless now. I no longer have any expectations or hopes for this store. In the past, when I came to the store in the morning, I would think, I don't know how much money I can make today. Now, when I come to the store, I think, I don't even know when it will open. Opening the store itself has become a problem. I don't know how your business is doing now. Anyway, you can see that there is no one here. Let me take you outside to see what the situation is like. This is what it looks like outside. Is there anyone? Let's see if there is anyone here. This is the situation. There's no one. Not only are there no customers in our restaurant, but the streets and even the vegetable market are empty. This morning, I went to the wholesale market to buy vegetables for the store. In the past, it was so crowded that you could barely walk. Now, 99% of the people buying vegetables are elderly. The most they buy is five yuan worth of green onions, one yuan worth of greens, and for those who buy a little more, it's Chinese cabbage and radish. These vegetables seem to sell the fastest in a day, while the more expensive ones remain unsold. No one is interested in them. Even the garlic sprouts, which I love to eat in this season and cost only 10 yuan per pound, aren't being bought. The real estate industry, once a hot commodity, has also lost its halo. Those white-collar workers who were envied in the past now have to change careers. Many have even joined the so-called triathlon, working in food delivery, ride-hailing, didi, and express delivery to support their families. Countless middle-class people have fallen into poverty overnight, as if waking from a dream. A few years ago, during the bubble boom era, everyone was comparing cars and houses. Now, sudden poverty and loneliness have created a huge gap, leaving countless people feeling helpless and lost. My company went bankrupt last December, and hundreds of employees were laid off. I worked as a frontline operator in the company for eight years. I have no skills, no technical expertise, and no higher education. Are the only three options left for laid-off middle-aged men, didi, food delivery, and express delivery? I still don't know what to do.