In China, vast numbers of vacant buildings can be seen everywhere, standing like rows of tombstones—an eerie and shocking sight. (Screenshot from video)
[People News] Since last year, numerous Chinese netizens have uploaded videos revealing a drastic decline in population across both urban and rural areas, with entire villages left deserted. Even major commercial streets in first-tier cities are now devoid of shoppers, creating a chilling scene of economic stagnation. Meanwhile, the widespread presence of vacant and unfinished buildings, along with the closure of large shopping malls in major cities, signals that China is on the brink of an enormous economic disaster.
Empty Buildings Stand Like Tombstones
According to Newsweek, "ghost cities" are widespread across China, with an estimated 65 to 80 million housing units left vacant—resembling the tombstones of a collapsed economic bubble. This phenomenon not only exposes the consequences of reckless speculation but also foreshadows an impending economic crisis.
Reports indicate that in the past, real estate was considered a "safe investment," with 70% of Chinese household wealth tied to property. However, today, tens of millions of empty apartments and millions of unfinished housing projects have created an alarming situation.
For example, Kangbashi District in Ordos, Inner Mongolia, was designed to accommodate 300,000 residents, yet its occupancy rate remains below 10%, making it a classic "ghost city." Similarly, Yujiapu Financial District in Tianjin, once promoted as "China’s Manhattan," saw enormous investments in office buildings and subway infrastructure, yet it has remained largely abandoned for years. Meanwhile, Xiong’an New Area, where the government has poured 610 billion yuan into creating a "national economic hub," is lined with towering skyscrapers but remains eerily empty, exposing significant planning failures.
MIT Associate Professor Sarah Williams points out that China’s housing supply has far exceeded saturation levels, yet developers continue to build. This is due to the CCP’s encouragement of excessive real estate supply, banks’ willingness to provide generous loans, and developers rolling over old debt with new borrowing—essentially operating a Ponzi scheme. She warns that this model has pushed developers to the brink of collapse, and as banks demand repayment, a larger crisis looms. However, the real economic cancer lies in the vast "ghost cities" and numerous smaller "ghost districts," where excessive investment has jeopardized homebuyers' financial stability. With little hope of returns, families and the market face severe financial strain. Over time, this will trigger a "massive chain reaction," impacting banks, developers, and ordinary citizens—ultimately shaking the foundation of China’s economy.
The Stark Emptiness of Shanghai is Shocking
Shanghai stands as China's economic powerhouse, with Nanjing Road being one of its iconic commercial landmarks, historically recognized as a vibrant shopping district in the city center.
On March 23, a popular blogger with hundreds of thousands of followers, 'Mei Dashi', released a video titled 'Surprising! The most crowded spot on Nanjing Road has started closing many stores!', where he shared his experiences while walking along the bustling Nanjing Road in Shanghai, along with footage he captured inside Shimao Plaza. Shimao Plaza is a large, integrated commercial complex that combines shopping, dining, entertainment, office space, and hotels, strategically located near People's Square and the Nanjing East Road subway station, and adjacent to other commercial centers like New World City and New World Daimaru.
'Mei Dashi' recounted that a friend from Shenzhen had invited him to dine at Shimao Plaza on Nanjing Road. The malls along Nanjing Road are primarily frequented by foreigners and the middle class.
As the camera followed 'Mei Dashi' into Shimao Plaza, he noticed that many stores on the first floor were closed. He couldn't help but exclaim, 'Why are all these stores closed? Oh my God, why are these shops in Shimao Mall shut? I know many malls in Shanghai have closed several stores, but Shimao Plaza shouldn't be like this. It seems that business on Nanjing Road isn't thriving either... It's hard to fathom.'
He passionately stated, 'We used to say that anything could be sold on Nanjing Road, but now I don't even know how to express it! This is the busiest section of Nanjing Road, the starting point of the Nanjing Road pedestrian street!' 'But unexpectedly, it has disappointed everyone. I apologize, I didn't mean to.'
The footage showcases the second, third, and fourth floors of Shimao Plaza, where several restaurants are located, yet the area is notably empty.
Master Mei (Mei Dashi) expressed his astonishment, saying, "My goodness! It's hard to believe this is the busiest spot on Nanjing Road in Shanghai!" While Nanjing Road remains the same, the vibrant scenes of the past, once bustling with crowds, have vanished.
Middle-Class Consumption Downgrade: Over Half the Population Lives in Poverty
In recent years, various factors, including the pandemic's impact and economic downturn, have led even middle-class consumers to downgrade their spending. The closure of large shopping centers in first-tier cities starkly illustrates the severe impact of economic recession on ordinary citizens.
In July 2024, a video revealed that Meilong Town Plaza on Nanjing West Road in Shanghai announced that, aside from the U.S. Consulate General in Shanghai located within the plaza, all other businesses and tenants would cease operations on August 1. This marks the closure of the Shanghai Meilong Town Plaza, which has been in operation for 26 years.
The video noted that industry insiders have analyzed that in recent years, it has become increasingly challenging for the new middle class to earn a living. Shopping malls that were once favorites among the middle class, such as Shanghai Pacific Department Store, Guangzhou Tianhe City Department Store, and Wuhan New World Department Store, have all shut their doors one after another. In light of the current trend towards rational consumption, the once-coveted "high-end" positioning of luxury department stores seems to be losing its allure for the middle class, who are now more reluctant to spend. The current economic situation is clear to everyone.
According to publicly available data analysis, 42 department stores in the country closed down in 2022, with 27 of these malls having been in operation for over 10 years. By 2023, 21 more department stores had shut their doors. In July 2024, several well-known malls in Beijing and Shanghai were successively transferred and ceased operations.
For the more than 600 million Chinese individuals earning less than 1,000 yuan per month, the economic challenges they face are undoubtedly more severe than those experienced by the middle class. How much longer can the Communist Party maintain its rule when over half of the population lives in poverty?
Many overseas netizens have commented: 'This has already reached a tipping point. Nanjing Road has not witnessed such a phenomenon in forty years,' and 'It is uncertain how long this recession will continue; as long as that person remains in power, there is no sign of any turnaround.'
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