China’s central media agency Xinhua’s Half Moon News quoted statistics that from January to November 2020, a total of 3.01 million individual businesses were revoked and cancelled in China.
The data show that the revocation and cancellation of small stores are mainly concentrated in the eastern coastal region, with significant differences between the east and west. Jiangsu, Guangdong and Shandong provinces ranked among the top three in the country in terms of the number of small stores cancelled in 2020. Suspended cancellation of small stores, 69.4% of the store operating Time of less than 5 years.
The “Half Moon” reporter recently visited all over China, from the situation in Tianjin, Changchun, Shenyang, Chengdu, Guangzhou and other cities, Education, fitness, bathing and other industries closed down more.
Changchun, an educational training institution called Ark City Children’s Growth Center, originally quite popular with Parents, closed all three campuses by the end of October last year. “Enrollment difficulties, the campus rent burden is also heavy.” A director of the institution said.
In Tianjin, the trendy shopping district Yingkou Road, which is deeply attractive to young people, saw that of the 44 stores on one side of the 900-meter road, 17 had suspended operations and several were being transferred. “The whole street of stores is in deep struggle.” A bar owner said.
A small 30-square-meter restaurant near the exit of the Maluwan subway station in Shenyang’s Heping District has been cold and quiet lately. The owner, nearly 50 years old, couldn’t stop sighing when he saw the Half Moon reporter: “The children are in high school, and the whole Family income depends on the restaurant to maintain. Now the loss of misery, I do not know how the family still support.”
The closure of small stores brings impact on employment and financial markets
Wang Jing, a contributing researcher at Peking University’s Digital Finance Research Center, warned that the closure of small stores will also have a negative impact on financing for small and medium-sized enterprises. Most of the rents received by the landlords of small stores today are invested in the private lending market, becoming the source of the “capital pool” of financing for SMEs outside banks. “The closure of a large number of small stores undoubtedly affects the ability of private financing, further narrowing the financing channels of small and medium-sized enterprises.”
A number of experts interviewed by the “Half Moon” reporter believes that small stores are the cells of the livelihood of the economy, is the last barrier to mass employment, in the survival of small stores facing special pressure at the moment, it is right to give a helping hand.
First, the grassroots government should promote effective negotiation between store lessors and lessees to reduce rents. Zhong Lina, secretary of the Party Working Committee of Kaixuan Street in Changchun City, said that after the Epidemic, small shop operators saw their operating income plummet and could not afford the rent for their stores. Local active communication with the mall operator, the mall decided to waive 2 months’ rent for all tenants and, starting from the second half of the year, lowered the rent rate, reducing the pressure on the operating costs of small stores.
China’s low per capita income
China’s National Bureau of Statistics announced last week that the per capita disposable income of Chinese residents in 2020 will reach RMB 32,189, which represents a real growth of 2.1% net of prices, or an average monthly income of only RMB 2,682 per person.
By place of permanent residence, urban residents will have a per capita disposable income of 43,834 yuan, up 1.2% in real terms. rural residents’ per capita disposable income was RMB 17,131, up 3.8% in real terms, or an average monthly income of only RMB 1,427 per person.
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