A recent article by Newsweek posed a question: “Has China’s Shanghai Turned Into a ‘Ghost Town’?” It was based on photos from social media platform X, suggesting that Shanghai was desolate. This claim quickly ignited strong reactions on Chinese social media. Over 10 million views were clocked in on this topic by Monday. Many were taken aback by the audacity of the report attempting to label a bustling city, home to around 25 million people, as deserted.
This sensationalism wasn’t a surprise to many in China. Over the past months, some Western officials and media have propagated the narrative of a faltering Chinese economy. Even US President Joe Biden labeled China’s economic situation as being on the brink, though not without making factual errors.
But the on-ground reality of China’s economy paints a different picture. The Global Times explored the nation, focusing on the major growth avenues: consumption, investment, and exports. Their reporters witnessed vibrant night markets, shopping centers, and tourist attractions, signifying a thriving consumer market, indicating a steadily recuperating Chinese economy.
The Reality in Shanghai
On investigating the very spots in Shanghai showcased as “empty” on platform X and subsequently by Newsweek, the inconsistencies were evident. The Newsweek article had hinted at concerns about China’s economic state. But what the Global Times reporters saw was starkly different from these insinuations.
At a Starbucks in Shanghai’s Lujiazui, which was portrayed as barren in the photos, was bustling around 1 pm. The place was nearly full, showing clear dissonance with the portrayed narrative. The success of Starbucks in China reinforces this. Their latest reports showed a 51% year-on-year growth in revenue, with ambitious plans for expansion. It is illogical to assume these stores would remain empty.
Shanghai’s tourism sector alone refutes the “ghost town” narrative. The first half of 2023 saw 139 million domestic trips, accumulating over 155 billion yuan in revenue, a 100% increase from the previous year. Additionally, foreign investments are growing, with 3,261 new foreign-invested firms established between January to July, marking a 50.6% growth from the year before.
Cities like Beijing and Hotan echo Shanghai’s vitality. In Beijing, areas near the Bird’s Nest Stadium were bustling. Meanwhile, at the 2023 China International Fair for Trade in Services, foreign products were in high demand. The vigor of these cities is reflected in the summer travel data, with 1.839 billion domestic trips and a staggering revenue of 1.21 trillion yuan. Box office earnings hit a record 20.6 billion yuan.
Tian Yun, a renowned economist, emphasizes that many metrics even surpass pre-pandemic levels, indicating the diminishing impact of the pandemic on day-to-day life.
International Confidence in China’s Economy
Despite the bleak picture some Western sources try to paint of China, international businesses, including Western ones, are keen to expand in China. They’re “voting with their feet.”
For instance, Kevin Chen of Australian honey brand ANB expressed confidence in the Chinese market. His brand witnessed significant sales once they adapted their branding for Chinese e-commerce platforms.
China’s massive consumer market stands at 1.4 billion, including over 400 million middle-income individuals. This is a market global businesses, whether European luxury brands or Latin American exporters, can’t overlook. Even US Commerce Secretary Gina Raimondo promoted US products in Beijing, distinguishing commerce from “national security” concerns.
This confidence stems not just from market size but also from China’s strategies to address challenges and create a mammoth, unified national market. This market doesn’t only support China’s growth but opens doors for global enterprises.
In July, China introduced 20 measures to bolster domestic consumption, from promoting real estate to facilitating car sales. Initiatives to revive property sales, such as relaxing purchasing constraints and reducing mortgage rates, have been launched.
Tian believes that while there’s recovery in the consumption market, its full potential is yet to be realized. As sectors like new-energy vehicles advance, he feels the growth engine is just warming up.
Read More: