China reported a surge in the number of tourists and strong consumer activity during the five-day Labor Day holiday, but netizens have taken to Chinese social media to question the accuracy of the data, citing multiple economic pressures and a decline in exports.
China’s Ministry of Transport data showed total cross-regional passenger traffic averaged 293 million trips per day, up 8 percent from a year ago, while sales of major retail and catering businesses were up 6.3 percent during the holiday, the state-run Global Times reported.
“The twin boom in travel and consumption not only ignited the holiday economy but also revealed the depth and vast potential of China’s economic development,” a Global Times editorial on May 5 said.
Contrary to Chinese state media reports, sources in the region said the overall consumer sentiment and market environment during this year’s May Day holiday was far worse than before.
Once-bustling shopping venues were devoid of their usual volume of eager shoppers, while cost-conscious travelers were opting for cheaper alternatives to get around, they added.
For example, the Baidu search index showed the search popularity of “green train” increased significantly during the May Day holiday, as many passengers sought the cheap but time-consuming mode of travel, instead of the more expensive but significantly faster high-speed rail option.
The reality of the middle and low-income groups “having holidays but no budget” is very different from Chinese state media reports of “boom in consumption,” say netizens.
Wuhan resident Zhang said shoppers were few when he visited the popular Wangfujing shopping complex on Zhongshan Avenue.
“(It) was empty and there were not many people … The atmosphere is definitely not as good as before. Prices have gone up; even the price of medicine has gone up,” Zhang said.
Last month, RFA reported that businesses in major export hubs in southeastern China were announcing factory “holidays” – halting production and slashing employee wages and work hours – with more than 50% of export companies in Zhejiang set to take a “long holiday” after the Labor Day holiday on May 1.
“Even if we receive orders (from the U.S.) now, we have to transfer them to Vietnamese factories,” Chen Xiaoqin, head of a foreign trade company in Shenzhen city in Guangdong province, told RFA.
“Many factory production lines in Guangdong have stopped. What do you think we should do?” she asked.
Edited by Tenzin Pema and Mat Pennington.
