This year in China, the Spring Festival lacks its usual glitter, bustling markets, and the throngs of travellers returning to their hometowns. Since the COVID-19 pandemic, China’s economic situation has deteriorated significantly, resulting in the loss of hundreds of jobs. Those who are still employed are receiving only half their wages. Consequently, people are spending their limited savings very cautiously. Many have decided not to return home for the Spring Festival. As a result, the number of people traveling by road, rail, and air has been negligible. Some travellers reported that their train cars were completely empty.
A passenger found himself alone in an entire first-class train car during the Spring Festival travel rush. Unlike the usual crowded scenes of previous years, the train was eerily empty.The news came out that this year, securing High-Speed Rail tickets online for returning home during the New Year was challenging, but once on board, people found the train cars nearly deserted.
In recent years, the Chinese government’s crackdowns on real estate, internet platforms, and education have stifled economic growth, causing widespread stagnation. Layoffs and soaring unemployment are now common. As the Lunar New Year approaches, many Chinese citizens, facing financial hardships and hopelessness, find celebrating the holiday feels like enduring a daunting challenge rather than a festive occasion.
Because of the high cost of High-Speed Rail tickets, many labourers choose the more affordable “green-colour” trains, even if the journey is more gruelling. Viral videos depict these trains packed to the brim—every seat occupied, people squeezed into aisles, and even restrooms overcrowded. In stark contrast, high-speed rail cars are spotless yet largely empty, highlighting the stark difference in travel experiences.
The stark difference is due to high-speed rail tickets being three to four times more expensive than regular ones. To promote high-speed rail, the Chinese government has reduced green-colour train services, resulting in overcrowded conditions on those trains.
In the past, returning home for the Spring Festival was a joyous occasion. However, now conversations are dominated by unemployment, financial struggles, and the absence of festive cheer. Many individuals over 35 find it nearly impossible to secure jobs due to age restrictions in job listings. This discourages them from even applying. As a result, many choose not to go home for the New Year, unable to face their parents with the burden of their struggles. The once-celebratory event has become overshadowed by economic hardship and despair.
Statistics indicate that young people spend between 5,000 and 10,000 Yuan (approximately $800 to $1,600) each time they travel home for the New Year, equating to roughly a month’s salary for some. This significant expense prompts many to skip the trip altogether. They aim to save money and rest but, in reality, wish to avoid immense expenses and social obligations. By the end, they’re back at work, mentally and financially exhausted.
Despite not receiving salaries for months, many workers refuse to quit their jobs, clinging to the glimmer of hope that employment provides. They believe staying employed offers better bargaining power for the future. Quitting now, in the midst of economic uncertainty, could mean not finding work in the near term. This fear keeps them holding on, even as financial difficulties mount, highlighting the precarious nature of the current job market. Their reluctance to leave underscores their desperate need for stability in uncertain times.
On January 17th, China’s National Bureau of Statistics announced that the country’s GDP grew by 5% in 2024, surpassing 130 trillion Yuan for the first time. Officials touted China as the second largest economy globally, contributing 30% to global economic growth and serving as a primary driver of economic expansion. However, this announcement was met with widespread skepticism and sarcasm on Chinese social media. One individual remarked, “Where did that 5% go? My friends and I have collectively lost at least 50% of our earnings, if not more. So where did that 5% go?” This sentiment reflects the growing disconnect between official statistics and the public’s lived experiences amidst economic challenges. As of January 18th, data from Chinese provider Wind revealed that over 900 listed companies had published their 2024 performance forecasts. Among these, more than 54% anticipated losses, while only 22% expected growth. This stark contrast underscores the profound negative impact of the Chinese government’s policies and the escalating economic uncertainty plaguing the nation. The figures paint a bleak picture of China’s economic landscape, highlighting the growing challenges and diminishing confidence among businesses. The widespread anticipation of losses reflects the extent of the economic turmoil and the urgent need for effective policy interventions.