[The Epoch Times, February 25, 2024](Comprehensive report by Epoch Times reporter Fang Xiao) During the Chinese New Year in 2024, the mainland will have an 8-day holiday. As the holiday comes to an end, consumption data is released one after another, with officials boasting that the domestic consumer market is “hot.” This statement was immediately slapped in the face by mainland financial professionals. It has become a consensus among many parties that China’s economy has fallen into the Great Depression.
The Data Center of the Ministry of Culture and Tourism of the Communist Party of China recently released calculation results stating that there were 474 million domestic tourism trips during the New Year holiday, and domestic tourists spent a total of 632.687 billion yuan on travel… The sales of key retail and catering companies across the country increased by 8.5% year-on-year on a comparable basis…
The Chinese Communist Party’s official media claimed that China’s economy is off to a good start in the new year, judging from the New Year consumption data on tourism, catering, commodities, transportation, movies, etc.
In 2023, although the CCP has relaxed its epidemic control measures, China’s entire industry has fallen into depression, exports have declined, domestic demand growth has almost stagnated, total manufacturing production and sales have dropped significantly, real estate has almost collapsed, and most service industries have experienced various downturns.
Financial influencer “Da Liu Shuosuo” with 3.84 million fans recently posted a video saying that although consumption picked up during the Chinese New Year this year, in essence, current consumption does contain elements of false prosperity. Behind hundreds of billions of consumption, The shrinkage of trillions of consumption. It means “lipstick economy”.
“Lipstick economy” refers to an interesting economic phenomenon that leads to hot sales of lipsticks due to economic depression. It is also called the “low-price product preference trend.”
He said that no matter whether you have money or not, if you are willing to spend a little money to improve your life within the scope of your own conditions, then all Chinese people, no matter how poor they are, can build up the consumer market. Therefore, no matter what kind of consumption it is, as long as it occurs domestically, it can speed up the flow of domestic wealth. As long as money flows, some money will always flow to those who need it; if the money stops flowing, it will be completely troublesome.
“Da Liu Shuo Shuo” said that given China’s current national conditions, the significance of consumption recovery is so important that it can be elevated to the level of national destiny. He said that as we all know, the traditional economic ties between the West and China are decoupling. This trend is irreversible and has now become a consensus in the West. Chinese people would be wise not to have any illusions about this.
He emphasized that in this sense, stimulating domestic consumption is of great significance.
This month, Voice of America published an article by a Shanghai political scientist named Jiang Feng, “The Great Depression is Coming: The Historical Moment of ‘Shanghaiization’.”
The article said that the atmosphere on the eve of the Chinese New Year this year was particularly strange, as if the people were facing a Great Depression that they had never experienced before. The Chinese people are helplessly watching the onset of the Great Depression. The most obvious thing is that this year, more businesses and factories have closed early or taken holidays than before. Every industry is in depression, and “boss running away” has almost become the new normal.
The article stated that the internal circular economy, which is anti-market economy and dominated by power, is becoming the mainstream of China’s model. China has been fundamentally and comprehensively damaged over the past decade. Moreover, this kind of destruction is thorough and unscrupulous. The result is a direct short-selling of the Chinese economy and even short-selling of Chinese politics. This can be said to be the root cause of China’s short-selling politics, that is, a Great Depression is inevitable.
Financial experts: The biggest problem is that the crisis of trust has caused excess capital in the three major industries
Financial influencer “Magical Blue” recently said that the biggest problem faced by the Chinese people now is the excess of three major capitals caused by the crisis of trust.
He said that the first type of excess is industrial capital excess. China’s manufacturing industry has a comprehensive surplus. The overall operating rate of many industries is less than 50%, or even only 20%. Demand is insufficient, people have no money, and the products produced cannot be sold, resulting in overcapacity. Except for some industries that have not been liberalized, capital has experienced overcapacity. Enterprises have insufficient orders and low profits. Foreign capital has withdrawn accordingly, and the number of unemployed people has increased. Reduced demand further strengthened overcapacity.
“The second type of capital excess is financial capital excess. Many banks have more deposits than loans. Companies do not invest, and residents do not consume. This money does not flow to the real economy, but is idle in the financial system. Banks cannot lend, and they have to borrow money. Giving people interest is an excess of financial capital.”
The third type of excess capital is the excess of commercial capital. Now the streets are full of shopping malls, pharmacies, hotels, and milk tea shops. There were 420,000 pharmacies in 2012, and by the end of 2022, there were 620,000 pharmacies. There are at least 4 to 5 pharmacies on one street…
Henan netizen: I will be laid off on the first day of work after the new year
On various social media, a large number of netizens complain about the depression they have witnessed in various industries, including store closures, business closures, plummeting real estate prices, unemployment, and huge losses in stock trading.
Henan netizen “Yuzhou Erlong” is one of them. Recently, he posted a video saying that on the first day of work in the new year of 2024 (the tenth day of the Lunar New Year), he was actually laid off by the company. His wife is still at home. He didn’t want to tell his wife and family about his layoff.
He said that he had been looking for a new job in the past two days and looked for three places. In the end, he chose none of them because in addition to low wages, these jobs did not contribute much to his professionalism and growth.
Since there is no job, there is no place to live. He doesn’t know where his future job will be, so he has to live in his car. February 22 was his third day living in the car. He said he was woken up by the cold in the morning. A college classmate called him and said her company was also considering layoffs.
“Yuzhou Erlong” lamented that 45 people are competing for one position, and employment is too complicated. In general, it will be too difficult to find a job in 2024. There are few employers and too many applicants. Famous college students compete with middle-aged people like him for jobs. It is too difficult to find a job.
Qi Tian, who is certified as the “General Manager of Beijing Oriental Purification Technology Co., Ltd.” recently posted a video saying that he saw an old lady rummaging through a trash can for a long time. He asked the old lady what she was looking for, and she said she was looking to see if there were any empty bottles to sell. Her son has to marry a wife and pay off the mortgage. Selling empty bottles himself helped him relieve some stress.
Qi Tian said that the reality is that poor people have exhausted all their strength just by living.
Editor in charge: Li Renhe#
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2024-02-25 11:40:51
