The latest consumption data released by Beijing continues to look bad. In March, the total retail sales of consumer goods decreased by nearly 10% year-on-year. Beijing dissidents revealed that even the stability maintenance funds, which the Chinese government regards as the top priority, have shrunk.
The Beijing Municipal Bureau of Statistics announced the "Total Retail Sales of Consumer Goods" in March on April 18, which showed a year-on-year decline of 9.9% in March and a decrease of 3.3% from January to March.
According to the latest data released by the Beijing Statistics Bureau, restaurant revenue decreased by 3.1% in March compared to the same period last year, and by 3.8% from January to March. Retail sales of goods decreased by 10.6% in March, and by 3.2% from January to March. Beijing resident Mr. Qian told Radio Free Asia that many shops and restaurants have closed, leaving only takeout shops doing relatively well. "Beijing used to be bustling with people, but now most of them are closed or out of business. It's deserted, and there are too many people looking to rent."
The shopping streets are deserted and ordinary people are calculating their lives.
Mr. Qian described his current life as "calculating," avoiding purchases whenever possible, thus halving his expenses. "At least I've saved half. I don't buy anything extravagant anymore. Now I just focus on filling my stomach, and nothing else matters. I used to occasionally go to restaurants with my family, but now I basically don't go anymore. I cook at home, which is definitely cheaper than eating out." Beijing resident Mr. Chen also told Radio Free Asia that many businesses in Beijing have indeed closed, some due to excessive government intervention. Since Cai Qi became the city's Party Secretary and began cracking down on low-income people, many street vendors like baked bread, sausages, and cold noodles, which catered to the most basic workers, have gradually been eliminated. With insufficient consumer spending, many restaurants are sparsely populated and unlikely to survive for much longer. Mr. Qian also mentioned that Beijing's consumer sentiment has been declining in recent years, which is related to a series of government policy errors, including the cleanup of low-end population, the new crown epidemic, long-term lockdown, problematic vaccines, etc. Many people have died in recent years, and many companies have withdrawn their investments, stores have closed down, layoffs, and salary cuts. The unemployed have returned to their hometowns, and the resident population in Beijing has dropped sharply. The number of people with money to spend has greatly decreased. There are almost no people in shopping malls, and many restaurants have indeed gone bankrupt. There are no people in the streets of Beijing and Shanghai that were once bustling.
According to the data released by the National Bureau of Statistics, the "communications equipment" category saw the largest decline of 38.2%, followed by "stationery and office supplies" at 22.6%, "automobiles" at 20.2%, and "sports and entertainment products" at 17.6%. Petroleum and petroleum products, daily necessities, and cosmetics saw declines of 14.6%, 13%, and 10.9%, respectively. "Gold, silver, and jewelry" was one of the few categories to experience positive growth, with the highest increase of 28.5%. "Grain, oil, and food" saw a slight increase of 1%.
Beijing-based dissident Ji Feng told Radio Free Asia that he recently took a friend's car back to Beijing. The drive lasted two weeks, visiting seven or eight different places along the way. The economy remained stagnant throughout the journey, and he encountered no one who said this year was better than last year. Even his friend's earnings from the Moutai liquor business were lost in the stock market. Ji Feng, who once lived in Songzhuang, said that at least a hundred painters have left the village this year. Artists are unable to sell their paintings, businesses are failing, and people are moving to cheaper housing in the suburbs. The economy continues to decline.
I would rather keep money in the bank than spend it, not treat people or go to restaurants.
Ji Feng also stated, "Only established chain restaurants in Beijing, such as Dayali and Jinshoushao, are doing well in Beijing's dining scene. They used to have one- or two-hour waits, but now there's always a table. Cooking at home used to be a hassle, but now people can't afford to eat out, and they're not treating others to meals anymore. Incomes have plummeted, and even if they have some money, they'd rather keep it in the bank, fearing the economy will worsen. This is why last year, despite China's economic downturn and declining spending power, people's savings increased nationwide, because healthcare, education, and retirement are all insecure." The Chinese government responded strongly to Trump's reciprocal tariffs, but Ji Feng observed that the domestic economy isn't as resilient as the authorities claim. "There hasn't been a retaliatory rebound, but retaliation is coming," Ji Feng said. "Half of our foreign trade has essentially collapsed. If Trump continues with reciprocal tariffs and China and the US decouple, almost 70 to 80 percent of our trade will be lost." Ji Feng mentioned that former Chinese Vice President Wang Qishan, during the 2018 US-China trade war, blurted out that Chinese people could survive for a year eating grass. "From now on, we'll just have to tighten our belts. I feel like the party will launch a political campaign. Only political campaigns can divert attention and stop people from making trouble. This is a common method."
Dissident: The government owes money for maintaining stability, and the National Security Bureau will pay it first
Ji Feng revealed that even the stability maintenance funds have been reduced: "Government civil servants are no longer allowed to indulge in extravagant meals. This line has been cut due to funding constraints. Look at my national security, now reimbursement has become a problem. Now they are all like this, they have to pay out of pocket, and after that, reimbursement sometimes takes half a year, and they are unwilling to do so. In the past, they could borrow money first and then be reimbursed, but now they are not allowed to borrow money."
Ji Feng mentioned that he used to be constantly "invited to dinner" by the National Security Bureau and "taken on tours" on sensitive days. While the National Security Bureau used to be able to borrow money, they now have to pay it forward, and they don't know when they'll be reimbursed. For example, the National Security Bureau paid him 1,500 yuan to repair his computer and replace a battery, and they haven't been reimbursed for almost a year.
Ji Feng also explained that, while the National Security Bureau used to say they could come to Beijing anytime, and they could spend ten days or even half a month there, now they're rushed off in two or three days, and must first report to the higher authorities for approval before they're allowed to go. Reimbursement for "forced travel" accommodations ranges from 500 yuan a day in Beijing, Shanghai, Guangzhou, and Shenzhen, to 350 yuan a day in some provincial capitals and 250 yuan a night in some places.
Ji Feng noted that based on government revenue figures released last year, Shanghai was one of the few profitable cities, while other provinces and cities were mostly in deficit. "Real estate and land are stagnant, the stock market is plummeting, and the auto industry is facing problems, with orders failing one after another. Sales are stagnant, and the restaurant industry is struggling. People are tightening their belts and living a hard life. It's the ordinary people, not the officials, who are suffering. They continue to consume as usual, but they are a tiny minority. They can't support the entire restaurant industry, only a few restaurants."
A video posted by the user "Mr. Li is Not Your Teacher" on the X platform shows the Place in Beijing's CBD, from the basement restaurants to the first and second floors of designer clothing stores, mostly with their doors down or vacant for renovations. The videographer commented, "Before the pandemic, it was bustling. Now, there's no one. Many shops have been empty for ages, untenanted. The whole floor is like swatting flies—business is slow, and the staff have nothing to do. Most of the shops are closed and empty."
Another video on the platform quoted Mr. Zhang, who owns a noodle shop in Beijing, as saying that a large number of restaurants in Beijing have closed down in the past two years, leaving too many tenants unemployed. This year, with "too many people and too little work" across China, Beijing is inundated with people looking for businesses. One friend looked at more than a dozen shops in a single day, but couldn't afford to hire due to high salaries. He also has nearly 20 friends and relatives who are out of work, and every one they open is losing money.
