Coronavirus amplifies China’s regional economic divide, as some provinces struggle to reset consumption
- The coronavirus pandemic has inflamed economic disparities between provinces in the north and south of China
- Data indicates the diverging economic circumstances are closely correlated to a rebound in consumer spending
This is the fifth part in a series of stories looking at China’s economic outlook in the second half of 2021 as it continues its recovery from a coronavirus-hit 2020.
This summer, Zhang Luoluo’s cafe fashioned out of an abandoned shipping container celebrated its 10th birthday with little fanfare and few customers.
Located in an art district of Wuhan, the provincial capital of Hubei province in central China, the pink cafe is the only bright spot – and one of the few businesses still operating – in an area that was once jam-packed with stores and crowds.
The district, ravaged by the Covid-19 pandemic that broke out in the city in late 2019, is now desolate, Zhang said.
Since reopening last April following a three-month lockdown, her hopes of a quick return to normality have been dashed as former tenants, one after the other, have relocated or shut their businesses permanently.
The impact of the pandemic on economic growth might be longer than we originally anticipated
“Young people working in those companies used to be the foundation of our business, but now they’ve all gone,” Zhang said. “We’ve tried doing takeaways, we’ve tried promotions, we’ve redecorated the space, but our persistence, struggles and efforts are worthless.”
