The chinese dream is over—How the Rich Lost Everything Overnight

It's all covered in today's China Truths. Finally, I am done with my work. I am posting this video today not to win anyone's sympathy but because I can't hold it in any longer. My company failed, and I have too many disappointments in my life. Now I am in debt for 1.9 million. I dare not tell anyone, not even my parents, because they are old. I am afraid they will be sad and unable to bear it. Since I am not young anymore, I am already 40 years old. China's real estate crisis and economic downturn, coupled with the CCP's crackdown on private and foreign companies, have led to high unemployment, weak domestic demand, and the middle class returning to poverty. A survey shows that 80% of Chinese consumers believe they have experienced consumption downgrade. The phenomenon of consumption downgrade in first-tier cities is shocking. Whether in Beijing, Shanghai, Guangzhou, or Shenzhen, the former consumption boom has now subsided. Instead, people are tightening their belts and holding their wallets tightly, and many young people have begun to save money. Everyone has reduced consumption, and the once-bustling shopping malls have now become deserted. Today, we will talk about the topic of Chinese people's consumption downgrade. In the first half of last year, the total retail sales of social consumer goods in first-tier cities declined across the board. Shenzhen fell by 2.5%, Beijing by 6.3%, and Shanghai and Guangzhou were even worse, with drops of nearly 10%. Don't underestimate these numbers. Behind them, countless restaurant and retail owners are suffering, which means that the purchasing power of Chinese consumers has collapsed. Beijing's middle class, who have cars and houses and earn a million yuan a year, used to have no worries about food and drink, so why has their consumption level declined? The first and biggest reason is that Beijing's housing prices have dropped. A property originally worth 10 million yuan has now decreased to 7.5 million yuan, a direct loss of 2.5 million yuan. If you have to pay tens of thousands of yuan in mortgage loans every month, how can you dare to spend? In addition, Beijing's economy is struggling. Many large companies are cutting salaries and laying off employees. Many small businesses are also facing difficulties, especially in traditional industries like catering, where competition is fierce. We went to eat at a New World restaurant two days ago. It was a large restaurant of about 100 to 200 square meters. Yet at 12 noon, there were not many customers. How could it not be losing money? No one is making money now, so how can they afford to spend? We can see the extent of the local middle class consumption downgrade from what happened recently in Shanghai. First, the middle class used to frequent the fitness chain Wells, but Wells encountered a business crisis last year, and a wave of closures broke out at the end of last year. Wells primarily targeted the middle and upper classes in Shanghai, with the middle class making up most of its customers. Over the past two years, the economy has been bad, and fewer and fewer people have taken private lessons. The biggest profit source disappeared, and Wells couldn't even pay the rent. Secondly, some high-end postpartum care centers in Shanghai have also begun to close. Why can't these centers stay afloat? Ordinary people can't afford them, and the middle class, who used to be the main consumers, no longer go. There are also fewer students in Shanghai's international schools than before. In the past, middle class families wanted their children to receive a better education and climb the social ladder, so they preferred sending them to international schools. But since last year, many middle class families have transferred their children to public schools because their incomes have dropped and the expensive tuition has become too much of a burden. As the Chinese mainland economy continues to decline, the unemployment rate is rising, especially among young people. The pressure of life is increasing, and many young people are starting to save money to cope with an uncertain future. On the Chinese mainland social platform Xiaohongshu, many young people share their experiences of saving on shopping expenses. Some internet celebrities share tips on how to There have been more than 1.5 million posts on how to save money, with a total of 130 million views. Young people must learn to downgrade consumption. I used to have a monthly salary of 20,000 yuan, live a so-called refined life, drink a cup of coffee for 30 to 40 yuan a day, and go to restaurants and bars for entertainment and shopping from time to time. Moonlight Tribe and pre-consumption were synonymous with my previous life. I pursued temporary happiness and fell into the trap of consumerism. When I learned to downgrade consumption, I realized that one cup of coffee could buy two tails of pork ribs and 100 yuan could buy so many snacks in the supermarket, enough for me to eat for a week. I didn't like shopping in supermarkets before. I thought it was too troublesome. It was more convenient to buy online and have items delivered to my door. But now I know that supermarket discount promotions are more cost-effective than the full discounts on some apps. Here you can get a Coke for 1 yuan, snacks for 1 yuan, and daily necessities for 1 yuan. In fact, downgrading consumption does not mean not consuming at all, but rather cutting out unnecessary expenses, ensuring quality of life while making more cost-effective choices. Right now, there's no business anywhere. How can anyone talk about doing business? It's just too hard. Oh God, how are we supposed to make a living this year? I've opened my shop since morning and not a single customer has walked in. It's now 9.30 a.m. at Betawa, and the entire market is in the same state, from the fifth floor down to the first. It's all like this. Salaries aren't being paid, the boss said the business is shutting down, and now he's run off. No one is taking responsibility anymore. It's really over. They used to say that once tariffs ended, things would pick up. Look at it now. What recovery? The holidays are coming, and what are we supposed to do? Physical stores are deserted, shelves are empty, the storefronts may be lavishly decorated, and all the top domestic women's fashion brands are there. But none of it makes a difference. It's over. Completely over. This year is ruined. Many of these factories can't even open anymore, and it's hard to even get day labor. What are we supposed to do? I went out for a walk and it was truly beyond imagination. So many physical stores have shut down. Even if some are still open, about half of them have for-transfer signs on the front. Brick-and-mortar shops simply can't return to how they once were. Just look. Is it easy to do business now? This is what I saw on the main road next to a middle school. Several shops in a row, all like this. Everyone, just look. All of them have rental signs posted. I'm serious. Shut down all of them. It's really over. The most desolate shopping center in Wuxi is Dongfang Paris, right in the city center directly across from Suning Plaza. From basement level B1 to the fifth floor, aside from a few food stalls and delivery workers on the second floor, everything else is completely empty. Mainland Chinese residents are saying that factories and businesses are going bankrupt and shutting down. Many stores in the cities have ceased operations, and even large shopping malls are eerily quiet. Now, many people are unemployed, businesses are failing, and even basic necessities like food are hard to afford. How can anyone talk about consumption? Today, out of the blue, I received a message from a friend I hadn't heard from in years. We chatted for quite a while, and I could really feel the helplessness across every industry right now. She said she's already unemployed. She used to make shoes, but she quit because there are no customers anymore. The situation is the same in every field now. People say if you can just break even or make a tiny bit of profit, you're already doing better than most. Whether running a store, working a job, or once being a business owner, many are now unemployed, and many places are truly going bankrupt. I feel like a new wave of closures is about to hit. Many business owners are hesitating, unsure if they should renew their leases as contracts approach expiration. They're stuck in a dilemma. The situation is genuinely terrible across all industries. Customers who come to my shop also say they're desperately looking for work. If they can't find anything, they'll just go back to their hometowns. It's the same for everyone. A few days ago, a neighbor also said he's preparing to return home. He said the factory owner here has gone bankrupt and there's no more work. Better to go back home. Some people say they've spent all the living expenses they brought with them. They only worked for a few days, and now even food is an issue. The current situation is genuinely very tough. From large shopping malls to small 2 yuan shops, no one can escape the fate of shutting down. Look, even the major shopping malls have closed their doors. Why are they closing? In the past, even during our free time, we would stroll around. Whether big or small, malls always had people coming and going. There's even a subway station right next to it. This is a central transportation hub. To those from Huaibei, do you still remember the Huiwei Shopping Center? I just discovered today that most of the stores inside have shut down. It used to be too expensive to rent a spot there, and now no one even looks at it. The vibrancy of the past is completely gone. Even our favorite milk tea and snack shops are nowhere to be seen. What exactly led to this current situation? A fierce wave of street vendor competition is sweeping cities amid economic decline and pessimism. Stalls now crowd every corner, in front of homes, behind them, along every street. In cities like Hefei and other first- and second-tier areas, tens of thousands of vendors are emerging, with numbers rising sharply this year and expected to grow further. These struggles are also seen in daily life. Some survive on just 30 yuan a day and still face judgment. Older construction workers skip even 1 yuan buns, eating plain rice without side dishes. Many now lack basic food and clothing. Hardship may be hidden, but the reality is harsh. Here in Zhejiang, near the Yiwu and Yifu markets, many people are sleeping on the streets. Even in street vending, the number of sellers far exceeds buyers. People sell simple skewers, vegetarian ones for 1 yuan, meat ones for 2 yuan, all priced between 1 to 2 yuan. Some even offer free drinks if you spend 15 yuan, and yet business is still terribly slow. Tourist destinations are not spared, either. The scenic area of Lijing Gate in Luoyang has become desolate. Truly desolate. It's over. Look for yourself. All the stalls have disappeared. Places that used to be so crowded more than a decade ago that you couldn't even walk are now so empty you could roll on the ground and not touch a soul. All that's left is a bleak and silent scene. This man drove across several provinces, Jiangxi, Shandong, Anhui, Zhejiang, and after meeting many old and new friends, deeply felt that everyone is struggling now. The people around him are builders, factory owners, and business people. Many have gone bankrupt, are in debt, or have divorced. A great number of able-bodied workers in the cities still haven't found jobs since the Lunar New Year. In Shenzhen, many bought homes when prices were high. Now the homes sit empty, and they're losing sleep over their worries. Of course, a small number of people are still doing well, but for the vast majority, this year has been incredibly difficult, and the future may be even worse. In truth, the economic crisis has already erupted across the entire country. It's just that many people don't want to admit it out of pride. Many videos online show that China's current economic situation is extremely serious. From major cities like Beijing, Shanghai, and Guangzhou, to residents in various other regions, people are saying that the economy is worse than it has ever been. Store closures, business bankruptcies, delayed salaries, and joblessness have become the norm. Life for many citizens is becoming increasingly difficult. The economic reality is heartbreaking to witness. People say, open a restaurant, be your own boss. But look, the total sales were only 115 yuan. Forget supporting a wife and kids. You can't even afford to take care of your elderly father. It's already past 3 p.m., and from 9 in the morning to 4 in the afternoon, that's all they earned. In Shanghai, around 30 cafes located in high-end office buildings are seeing occupancy rates drop to just 20 to 30 percent. One 400,000-square-meter office complex in Dishuihu, Lingang, has an occupancy rate of less than 1 percent. It feels like there's no one left in Shanghai. And even places like Kaohsiung are seeing fewer people. South China Mall, once dubbed the largest and finest commercial complex in South China, along with Trade Plaza No. 2, now stands shut, all collapsed. KTV venues and commercial pedestrian streets are deserted because people simply don't have money anymore. At this point, it's no longer about whether people work hard or not. One person searched an entire county for hours looking for a market, and when they finally found one, it too had collapsed. There was no one there to pitch their product to. Jifeng Road in Simenku, once bustling, is now lined with shuttered stores, their signs taken down and replaced with for-rent notices. Oh no, even Xiamen is done for. Just look at the streets. My hometown is more crowded than this. Shuttered businesses, bankruptcies, everyday life has become extremely hard for ordinary people. North Sichuan Road in Shanghai, once teeming with foot traffic, is now nearly deserted. Even the quaint historic alleys of Shanghai, once lively and full of charm, are now mostly empty. Shopping malls are empty. Restaurants have no customers. Houses go unsold. Cars aren't being traded in. Chopsticks aren't rolling. For spring rolls, shoes aren't being bought. No one's getting married. And so, there are no children. Mr. Fan from Inner Mongolia commented that Chinese people are simply exhausted living in a country without social welfare, and that nothing should come as a surprise anymore. At the root of it all is the system itself. What's more frightening, or perhaps more tragic, is that many people don't even know the cause. Analysts believe that China's economy is currently in decline, and the government appears powerless in the face of the economic crisis, merely waiting for collapse.