China’s economic downturn has left both major cities and remote towns struggling, with malls and markets facing a wave of closures and street vendors outnumbering customers. Many people have fallen into despair as a result. (Video screenshot)
[People News] As of now, the GDP situation for all 31 provinces in China for 2025 has been disclosed, revealing that many provinces have not met the GDP targets set at the beginning of last year. With the time approaching to establish GDP targets for 2026, despite the Chinese Communist Party (CCP) authorities promoting a narrative of 'economic optimism,' several provinces that rank among the top ten in total GDP have lowered their growth targets for 2026.
Economic Powerhouses Take a Step Back
As of February 3, among the ten major economic provinces that have announced their growth targets for 2026, six—including Guangdong, Zhejiang, Henan, Hubei, Fujian, and Hunan—have directly reduced their growth target figures. Among the remaining four major economic provinces, Shandong and Shanghai have maintained their growth targets from 2025, while Jiangsu has adjusted its target from 'above 5%' to '5%', and Sichuan has revised its target from 'above 5.5%' to 'around 5.5%.' Last year, only three major economic provinces lowered their GDP growth targets, but this year that number has risen to six. This indicates that even within the top ten economic provinces, the outlook for the economy in 2026 is not optimistic; they are reluctant to follow the CCP in inflating GDP figures and have instead opted for a more cautious approach.
Guangdong Province has maintained its position as the top GDP performer in the country for 37 consecutive years. However, the GDP growth targets for the years 2023 to 2025 have been set at 5%. The actual growth rates recorded are 4.8%, 3.5%, and 3.9%, respectively. When combined with the data from 2022, it becomes evident that Guangdong's GDP growth has fallen short of expectations for four straight years. Other provinces are certainly not doing better than Guangdong.
As reported by Newtalk News, the Twitter user 'Old Driver' highlighted a recent investigation into steel mills in Tangshan City, Hebei Province. The report revealed that out of 95 surveyed steel mills, 44 plan to halt production for one week in February, while another 9 intend to stop production before the Lunar New Year, claiming this will allow their employees time to 'return home for the New Year.' However, 'Old Driver' noted that the significant economic costs of restarting steel furnaces after a shutdown mean that most steel mills are unlikely to announce production halts lightly, suggesting that these factories may already be in a situation where they cannot produce.
Additionally, 'Old Driver' mentioned that China's largest steel conglomerate, 'China Baowu Steel Group,' had closed its first and second steelmaking furnaces several years ago and repurposed the factory area into a 'tourism open area' to address losses stemming from overcapacity in the steel sector. 'If even Wugang has ceased production, how can these 44 small-scale steel mills possibly survive?'
Foreign companies are increasingly withdrawing from the market.
The Chinese economy has faced a continuous decline for several years, even reaching a state of stagnation. This, combined with stringent national security policies and extreme forms of so-called 'patriotism' that have incited anti-American and anti-Japanese sentiments among the public, has created an increasingly insecure atmosphere for foreign businesses. As a result, more foreign capital is withdrawing from the Chinese market, and a growing number of companies are initiating production halts or layoffs, further worsening the employment and business environment in China.
Simultaneously, the Twitter user 'MR.486' disclosed that the latest information set to be released in January 2026 reveals that at least 87 Japanese-funded enterprises have proposed plans to exit the Chinese market, with these plans receiving a subsidy of 70 billion yen from the Japanese government. Of these, 57 companies intend to focus on the development of their parent companies in Japan after leaving China, while another 30 companies plan to shift their collaborations towards Southeast Asian nations.
Additionally, the Twitter user 'News Investigation' shared a video stating that the Swedish furniture brand 'IKEA' has launched a compensation plan for affected employees following the announcement of closures at some of its stores in China. Most employees will receive a salary compensation equivalent to 'N 3' (which includes three months' salary plus years of service).
Furthermore, IKEA has provided an alternative option for employees who are reluctant to accept compensation and do not wish to resign, arranging for these employees to work at other IKEA stores that remain operational. 'News Investigation' noted that the conditions offered by IKEA are 'far better' than those provided by other local Chinese companies, and 'regardless of whether they resign or not, nearly all employees have expressed positive emotions.'
Some internet users have commented that, for the average person, the exit of foreign companies signifies a decline in quality job opportunities. After losing their dignified positions, those who worked in foreign enterprises are struggling to adjust to local companies that 'do not treat people as people.' △
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