The sound of firecrackers drives away the old year&9;s evil spirits. (Screenshot from the internet)
[People News] Chinese state media have been heavily promoting a narrative of bustling Lunar New Year celebrations, emphasizing the rise of digital greetings, vibrant markets, booming temple fairs, and enthusiastic family visits. However, interviews with residents across China paint a very different picture—soaring prices, weak consumer spending, and a fading festive spirit, as people tighten their belts in stark contrast to official reports.
According to Radio Free Asia (RFA), there is a stark contrast between the official narrative and the public's perception of this year’s Lunar New Year celebrations in China. According to a report from China Economic Net and Economic Daily, the Lunar New Year is the most important traditional festival for the Chinese nation and a peak season for consumption. The report describes a festive and prosperous atmosphere, with people welcoming the new year, visiting relatives and friends, shopping for holiday goods, putting up Spring Festival couplets, enjoying reunion dinners, and attending temple fairs. Additionally, the report highlights record-breaking box office pre-sales for Lunar New Year films, and that the total online retail sales during the nationwide New Year shopping festival exceeded 700 billion yuan before the holiday even began. Furthermore, across China, over 4,000 cultural and tourism consumption events—totaling around 27,000 individual activities—are being organized to cater to popular holiday demands such as traditional customs, gourmet food, winter tourism, warm-weather getaways, wellness retreats, family activities, educational tours, performances, fashion, and the "Guochao" (national trend) movement.
Fruit Shop Owner Reports 70% Drop in Sales
Contrary to the state media’s portrayal, Ms. Lu, a resident of Shandong, told RFA on January 31 (the third day of the Lunar New Year) that this year’s holiday season has been bleak, with fewer people in the streets and a much weaker atmosphere compared to previous years. "People have lower incomes this year, and the economic outlook is not optimistic. Many believe 2025 will be even worse. As a result, people are spending far less than before," she explained. She cited a local fruit shop owner, who said his New Year sales had dropped by two-thirds compared to last year. "He told me that he doesn’t dare to stock expensive, high-end fruits anymore. Instead, he’s only bringing in affordable options—but even those aren’t selling well."
Lu added that most people now consider holiday shopping optional, leading to sluggish sales: "If it's not absolutely necessary, they won’t buy it. They are prioritizing needs over wants."
A resident of Mentougou District, Beijing, Ms. Wang, told Radio Free Asia (RFA) that the local markets were deserted, with many vegetable stores closing a week before the Lunar New Year and only reopening after the seventh day of the holiday. She described the quiet and subdued atmosphere: "There’s hardly anyone in the markets and shopping malls. In past years, the sound of firecrackers was constant, but this year, only a few scattered bursts could be heard. Many store stalls in shopping centers are empty. This isn't just happening in one or two places—it’s a widespread phenomenon. In the past, vegetable stores stayed open until the 27th or 28th day of the last lunar month, but this year, many shut down seven to ten days earlier and won’t reopen until the seventh or eighth day of the new year at the earliest."
Tengzhou Neighborhood Committees Unpaid for Ten Months
A netizen from Tengzhou, Shandong, Mr. Zhao, shared his observations with RFA: "Residents are clearly cutting back on expenses, and many families are struggling financially. The number of people out on the streets has visibly decreased. I heard from the local neighborhood committees that they haven’t received their wages for ten months. In Longquan and Qinghe neighborhood committees within the city, they also haven’t been paid for ten months. If the government doesn’t print more money, the financial strain will only worsen. Even workers at a local coal mining company have had their insurance payments suspended."
Mr. Li, another resident of Tengzhou, revealed that even the police have been complaining about financial difficulties when visiting so-called "sensitive individuals" during the New Year: "Before the holiday, police officers came to visit me for New Year's greetings. They told me outright that their medical insurance is about to be cut off. Tengzhou is considered a relatively wealthy county-level city, so if it's in this state, one can only imagine the situation in other regions."
Ms. Yang, a resident of Chengdu, Sichuan, observed a shift in New Year traditions, noting a decline in lavish gift-giving and festive visits: "People are being much more cautious about spending this year. Unlike before, when people would buy lots of things and carry large gift bags while visiting relatives, now you rarely see that."
Similarly, Mr. Fang from Wuhan said he could hardly feel the festive atmosphere this year: "When I visited my second sister for New Year, I just brought a small basket of fruit—nothing more."
Economic Downturn Leads to Cautious Spending
During the 2025 Lunar New Year, Chinese citizens have adopted a more cautious approach to spending. Guangzhou-based scholar Mr. Sun told RFA that factors like corporate layoffs, unstable incomes, and rising unemployment have forced many families to cut back on non-essential spending. He gave an example: "I have a friend whose business had a gross revenue of over 20 million yuan the year before last, but last year it dropped to just over 4 million yuan. Imagine how big that gap is. Consumer spending has clearly taken a major hit."
Sun believes that weak holiday spending is a reflection of China’s broader economic and social changes. In the long run, he predicts that the Chinese consumer market will shift from "impulse buying" to "rational consumption", making cautious spending the new norm, as demonstrated during the 2025 Lunar New Year celebrations.
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