Taxi driver Cao Changyu, 56, said ride-sharing apps have been undermining his business for years. Today, he said, the competition is even worse.
“Driving a taxi is hard work. It's extremely competitive because China's job market is a mess and a lot of people have been laid off,” he said.
According to Cao, the laid-off workers flocked to Shanghai to become rideshare drivers, directly competing with taxis like his.
“My wish [for the Lunar New Year]? Retire early,” Cao said.
In China, the past year was marked by slower wage growth, declining exports and high unemployment. China's government statistics show that the Chinese economy grew 5.2% last year, which would be enviable in many Western countries, but it is the weakest non-pandemic performance since 1990. The Chinese economy has not yet fully recovered from the pandemic . There is also uncertainty about the prospect of continued tensions between the US and China, as well as the ongoing housing decline at home.
Cao grew up at a time when China's economy was planned, food supplies were limited, and the Lunar New Year was the only time he could fully indulge in food.
“I used to look forward to eating sweet dumplings, chicken and fish,” Cao said. “We could only buy these supplies in the 1980s and 1990s if we had money and food stamps.”
New Year decoration seller Sun Zeyuan at her stall in Shanghai. Her wish is that her family is safe and healthy. (Jennifer Pak/Marketplace)
Today, China's economy is more open and food restrictions are a thing of the past. For the most part, Cao said he can eat whatever he wants at any time.
Xu Xiaoxiao buys Lunar New Year decorations at a small produce market next to a Ming Dynasty garden called Yu Yuan. She said her family still prepares dishes full of auspicious meanings on the eve of the Lunar New Year on Friday.
“Eating fish is a must because the word for fish sounds similar to a Chinese word for surplus. I will also have a dish called Eight Treasures Rice. Also rice cakes,” she said. The Chinese word for rice cake sounds exactly like the phrase: “May you be promoted every year.”
Jewelry seller Kang Xiuhua is surrounded by inventory that she says is difficult to sell. (Charles Zhang/Marketplace)
She works in investments and is preparing for a difficult year, but remains optimistic.
“The economy is slow, but I think there are still opportunities for those willing to take advantage of them. “I will focus on learning more about my field of work and trying harder to be successful,” Xu said.
Decoration shop owner Wang Meichun said his business has really taken off since the peak of the pandemic.
“I wish my life and business will be even better,” Wang said, adding that tourists have now returned to the area.
But just because more people are visiting Yu Yuan doesn't mean they're buying a lot.
“Business is not as good as last year because China's economy as a whole is not strong,” said another decoration seller at the small goods market. Sun Zeyuan added that she wasn't really sure how bad the deal was.
Chen Yongman in front of toys that, in his opinion, are becoming worthless due to strong competition from online retailers. (Charles Zhang/Marketplace)
But nearby, decoration salesman Li Guinan has been keeping an eye on the numbers.
“My business is down more than 50% compared to pre-pandemic levels. [In] “In 2018 and 2019, we were able to sell up to $3,000 worth of goods per day, but now we are only talking about a few hundred dollars per day,” Li said.
Many of his corporate customers, including hotels, are struggling and are therefore buying less from him. Many individual consumers buy things online.
Toy seller Chen Yongman said he simply couldn't compete with online retailers.
“Some customers ask me why I charge more than online shops. But I tell them that I have to pay shop rent, storage fees and rent for my apartment,” he said.
Li Guinan, a New Year decoration seller, looks at his cell phone as he waits for more customers. He says sales have fallen by more than half since before the pandemic. (Charles Zhang/Marketplace)
Chen's shop is on the second floor of the small produce market and he points to the many empty stalls around it.
“There are a lot of empty shops on this floor and the third floor. “The whole building used to be full from the basement to the sixth floor,” he said. “People moved away after China abandoned its zero-COVID policy.”
His company has not recovered from the pandemic.
“[My revenues] have fallen by more than 50%,” Chen said.
One of the toys proving difficult to sell is a plastic doll of former US President Barack Obama with a cigar in his mouth and two fingers in the air in the shape of a V. When you flip the switch on the back of his gray suit, he dances he to the music. The toy used to cost $12. Chen tries to give me the Obama toy. I'll pay it anyway.
A few doors away, jewelry seller Kang Xiuhua said she hadn't sold a single item all day.
“My sales are less than 10% of what they were before the pandemic,” she said.
Large parts of a small produce market near Shanghai's Yu Gardens are empty. Remaining providers say many companies have left since the pandemic. (Charles Zhang/Marketplace)
She has been working all year so that she can take the next week off and vacation with her children in southeast China.
“I want my family to be healthy and safe. As for China, I hope the country will do better,” Kang said.
During the Lunar New Year, many greetings and blessings revolve around good health and good luck, but many people here have more modest wishes for the coming Lunar Year.
“Every year it seems to get worse in China. “I hope this year will be about the same as last year,” Cao said. “People will still celebrate the Lunar New Year as best they can.”
Additional research by Charles Zhang
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