Desolation's Grip: Property Values Plummet, Malls Deserted in Economic Apocalypse

The latest events in Guangzhou's Haizhou district have revealed the substantial challenges facing the district's concrete economy and the increasing social unrest. The situation in this area is grim, with many shops closed or available for sale, despite efforts during the New Year period. The economy shows no signs of improvement, evident from the numerous businesses that have shut down. Even though this commercial center in Guangzhou's Panyu district offers conveniences like free parking and a car wash, foot traffic remains minimal, resulting in empty stores. A few years ago, my employer invested here with expectations of growth, but now it's all vacant and abandoned. The rise of online shopping and social media influencers has severely impacted traditional businesses. If this trend continues, I may not wait until next year before considering a permanent return to the countryside. The sight of empty floors and deserted parking areas is disheartening. Considering investing in a shop here would require careful thought, as the outlook for the upcoming year appears bleak. Traveling down Nanhua West Road in Guangzhou's historic district presents a scene of disappointment. Every shop along the street seems to be closed, with some even sealed off and advertised for auction. Despite its advantageous location near Shamian, one would anticipate it evolving into a bustling food street like Xihua Road, attracting tourists. Additionally, given the presence of nearby temples and ancient alleyways, it's puzzling why this area has become so deserted. While e-commerce may play a role, it doesn't fully account for the situation in Guangzhou, where offline shopping often thrives. The steep rise in rent prices, exacerbated by the pandemic in recent years, has made survival difficult for many traditional stores. While closures are expected, the wholesale shutdown of the entire street appears excessive. While some brick-and-mortar businesses struggle, others manage to succeed. Moreover, with the market gradually recovering and the economy showing signs of improvement, the complete closure of this street raises questions. Perhaps this area has been neglected in terms of necessary support, lacking policies that attract investment. With little activity on this street, it seems even the local residents have left the area. The absence of open restaurants is particularly noticeable. Introducing goose houses could potentially rejuvenate the dining scene. After exploring Xiamen, visitors could flock here for dining and entertainment. As foot traffic increases, the alleyways could evolve into popular destinations, further enhancing the area's charm. Currently, an intriguing phenomenon is unfolding in this area. What's the catch? Closed shutters greet you everywhere you turn. Pharmacies, restaurants, fruit stalls, and even adult shops. Has demand suddenly vanished? Unlikely. Only a handful of noodle joints remain, along with that New Pig's Trotters rice eatery across the street. Everything else seems to have succumbed. What's the story behind this? Notice, just 20 meters away, the adjacent road is bustling with crowds, and 200 meters down the left, the hustle and bustle amplify. It's a sharp contrast to the eerie silence enveloping this area. Let me explain further. Down the road, 200 meters from where I'm standing, lies a vibrant hub. Observe the intersection here. People flow in three directions, but none gravitate towards this spot. Why? One path leads to the subway and bus terminals, another to densely populated urban villages, and the third to a lively market and leisurely commercial avenue. Consequently, these areas dominate residential and consumer activity. The crucial detail is this. Just 20 meters to the right, there's a steady stream of passers-by, but here, it's a ghost town. It's like a P-shape, with no foot traffic flying through this passage. Why do people bypass this spot without pause? Their destination lies straight ahead. There's no reason to divert here. Isn't it peculiar? This small enclave finds itself disconnected from the bustling thoroughfares. It's akin to a solid dam halting the flow downstream. So, here's a thought-provoking question. Given this scenario, why are new businesses still sprouting up? Even a novice would think twice, wouldn't they? What's happening with the traditional retail economy in Guangzhou, Guangdong? What's behind the current decline? I'm currently at a chain supermarket located on Zhongshan Avenue in Tianhe District, Guangzhou. This supermarket has been a long-standing presence in the area, but as evident from my recording, there's an eerie emptiness, almost like a ghost town. I've been filming for some time now, and there hasn't been a single person passing through my frame. Amidst rising tensions between laborers and employers, alongside vendors struggling to survive and a significant decrease in foreign trade orders, Guangzhou's tangible economy appears to be in a precarious state. In Haizhou District, conflicts between workers and companies have escalated to a critical point, posing a substantial social obstacle. Workers express dissatisfaction with poor working conditions and low wages, while companies cite economic limitations, resulting in a deadlock that perpetuates ongoing tensions, endangering local stability and cohesion. It is crucial for governmental authorities to acknowledge the urgency of this issue and implement effective measures. Meanwhile, vendors in Haizhou District are contending with the harsh realities of diminishing profits. Fierce market competition, rising cost pressures, and sluggish consumer demand have compounded their financial difficulties, leading to calls for increased government assistance. However, amid the current circumstances, these appeals appear to go unheard. Additionally, the sharp decline in foreign trade orders has pushed many factory owners in Haizhou District and surrounding areas to the brink of collapse. Without a steady stream of orders, these factories face the imminent threat of closure, layoffs, or bankruptcy. Such outcomes would not only worsen unemployment but also deal a severe blow to the local economy, exacerbating social problems. Moreover, there is a pressing need for a substantial revamp in China's foreign trade domain. At various prominent ports across the nation, piles of empty containers present a grim sight. Ningbo Zhoushan Port is contending with an unprecedented surplus of empty containers, while those from Shanghai Yangshan Port are being redirected to Taicang. Yintian Port in Shenzhen has witnessed a remarkable 70% surge in container volumes compared to its record over the past 29 years. Consequently, Shenzhen Port, in its 29-year history, finds itself devoid of containers, resulting in idleness among workers. At Yintian Port, out of the 15,000 registered container truck drivers, only 2,000 are actively employed, resulting in a deployment rate of less than 15%. Foreign trade enterprises, particularly export-oriented ones in Guangdong, Jiangsu, and Zhejiang provinces, are bearing the brunt of this crisis. Workers are grappling with diminishing overtime pay as work shifts become scarce, and recruitment figures in electronic factories are plummeting. While this downward trend began last year, its acceleration this year raises concerns. Is the downturn solely due to sluggish economies in Europe and America, resulting in a sharp decline in external demand? Not entirely. Following a significant drop in China's trade with the United States in the third quarter of year, Germany witnessed a remarkable 50% surge in export growth to the United States in September. Before the pandemic, China held a 60% share of the US electronics market, but now Mexico has claimed an equal share. Despite the challenges, the United States remains the world's largest and most dynamic consumer market. Therefore, the need to de-escalate tensions with the United States becomes increasingly apparent, particularly concerning China's foreign trade. Urgent intervention is imperative. There is no room for delay. The recent surge in job cuts has not only devastated the financial stability of numerous individuals but has also profoundly shaken confidence within the entire industry. Faced with the looming threat of layoffs and reduced wages, many workers are experiencing severe financial hardships. For those who have lost their jobs, the prospect of unemployment is daunting, while those who have managed to Reflecting on this dire situation, a former employee of a prominent internet company expressed a bitter smile, noting that while downsizing may be a strategic move for the company, for those affected by the layoffs, it's a living nightmare. Finding new employment is a challenging task, re-entering the workforce even more daunting, and the relentless pressure of financial strain feels suffocating. In addition to the challenges faced by the private sector, the downturn in the internet industry has had repercussions throughout civil service ranks, dealing a significant blow to government employees. Traditionally seen as a pillar of stability, civil service positions have offered a sense of security. However, as the effects of the economic downturn persist, more civil servants find themselves grappling with increasing debt and declining living standards. The once assured income and welfare benefits associated with civil service roles have now become relics of the past, replaced by the burdens of debt and heightened pressures. Recent news has emerged regarding the imminent closure of Shanghai Bailian, a respected retail institution that has been a fixture in Shanghai's commercial scene for over seven decades. Located in the bustling Zhejiang District, Shanghai Bailian has long been a favorite spot for shoppers, hosting nearly 300 brand outlets. The announcement of Shanghai Bailian's closure has garnered widespread attention, attracting crowds eager to witness the end of an era. Despite attempts to ease the transition for loyal customers, such as facilitating the redemption of VIP points, the closure marks a somber moment in the city's retail history. Adding to the seriousness of the situation is the looming possibility of demolition and redevelopment at the site, highlighting the significance of this development. However, this closure is not an isolated occurrence but rather indicative of broader economic challenges facing China. In recent years, the country has faced sluggish growth rates and mounting debt, with Shanghai Bailian's closure reflecting a trend of shutdowns across the region, emphasizing the economic uncertainties at play. As China grapples with these challenges, it is evident that the retail sector is undergoing significant transformation. Traditional brick-and-mortar stores like Shanghai Bailian face stiff competition from online retailers and modern shopping complexes, while changing consumer preferences further complicate the landscape. Furthermore, reports indicate a scarcity of job opportunities in major cities such as Guangdong, Jiangsu, and Shanghai, with industrial areas resembling those towns. Job seekers are scarce, and available positions often come with meager wages and benefits, discouraging young individuals from pursuing employment opportunities. Similar challenges are unfolding in Shanghai, painting a grim picture of the economic reality for many in China. Shenzhen is currently facing a comparable situation as we progress through March. Despite its abundance of factories, many job seekers are still struggling to find employment. This may seem surprising given Shenzhen's industrial prominence, but the reality is that numerous factories are relocating away from the city, leaving job seekers bewildered. The diminishing number of factories has made securing employment increasingly difficult, a perplexing trend that defies easy explanation. Once hailed as a first-tier city and economic powerhouse, Shenzhen experienced rapid industrial growth after being designated as an economic special zone. The city became a hub for countless enterprises, establishing its manufacturing sector as unparalleled. Renowned factories like Huawei, Foxconn, and BYD thrived in Shenzhen, attracting workers from far and wide seeking opportunities. In the 80s and 90s, large factories were abundant, drawing hopeful crowds eager to secure employment. However, the industrial landscape has evolved significantly over the years. Today, factories are dwindling in number, with reduced staff and fewer job seekers overall. Previously coveted enterprises like Foxconn have lost their appeal. What's even more puzzling is the mass exodus of factories from Shenzhen. Areas that were once bustling with industrial activity, such as Tangwei and Tanxia and the Jintian industrial zone, now sit empty. Even prominent industrial zones like Shajing's Xiaowei industrial zone have seen factories relocate, leaving behind vacant spaces. Rumors suggest that even the largest underwear factory in Gongming is considering a move. At this rate, Shenzhen's manufacturing sector may disappear within a few years, exacerbating the employment crisis for laborers. Several factors contribute to this factory exodus. Rising costs, including skyrocketing rental prices and increased wage demands, have squeezed profits. Additionally, environmental compliance requirements and dwindling orders have strained enterprises, forcing them to seek relocation. Recent reports from foreign media outlets reveal that Lanji Green Energy, the world's largest solar energy manufacturer, plans to lay off nearly one-third of its workforce to offset overcapacity and fierce competition. The company has been accelerating layoffs since November 2023, affecting thousands of employees. While China aims to bolster emerging sectors like electric vehicles and renewable energy, traditional industries like real estate continue to dominate. Despite government efforts, these emerging sectors cannot fully replace the role of real estate in the economy. Fiscal challenges persist, necessitating caution in implementing stimulus measures.