From Business Owner to Homeless. China's Middle Class is Collapsing.

Shanghai, a symbol of prosperity and opportunity, once considered China's premier financial and luxury consumer center, is now in the throes of a deep economic crisis. The skyscrapers that were once the pride of the middle class have become burdened with debt. Housing prices have plummeted, businesses have closed, the job market is uncertain, and dreams of social advancement are fading. In this downward spiral, not only investors but also civil servants, intellectuals, and white-collar workers, people who once believed in a secure future, are struggling to survive. As confidence is shaken, the financial system is crumbling, and doors of opportunity are closing. The question is, where will Shanghai go? And how many people can withstand this storm? Let's explore this topic together today. I just escaped the hell of the past year. No exaggeration. At the end of last year, I fell into a financial crisis in Shanghai. Overdue payments, debts piled up, and creditors kept knocking on the door. I used to be a senior employee of a state-owned enterprise, graduated with a master's degree, but I rushed into the homestay business and borrowed heavily to buy a three-bedroom apartment in Pudong. Then the pandemic and the broken cash flow pushed me off a cliff. The real estate was mortgaged again and again, the court seized it, and I was saddled with 5 million yuan in debt. Debt piled up from credit cards swiped to the limit, and WeChat loans with interest rates of 3 to 5 percent per month. I thought I could pay off the debt if I just held on for two more months. But reality slapped me hard. Now, I have six enforcement orders and six blacklist notices for default. Humiliated by former colleagues and almost disowned by my family, I had no choice but to leave Shanghai, taking my young child with me. What shocked me even more was that recently, I accidentally discovered that the secretary of the state-owned enterprise where I used to work was also hiding from debt everywhere. His debt collection messages were even forwarded to my phone. I couldn't believe it. I always thought that only small people like me would fall into such a miserable situation, but who would have thought that a high-ranking official in a state-owned enterprise could also end up like this? Let everyone see my glorious past. Last year, I still owned assets worth tens of millions of yuan. At that time, I had a factory, two houses, and two cars in Shanghai. But in the end, because of a plot by my childhood friend and my best friend to cheat me, I lost everything. My house, my car, and even the most valuable thing, my self-respect, were gone. Now I have nothing. Some time ago, I sold my last car to get money to pay my employees. These days, I am also trying to adjust my state of mind. It may make people laugh at me, but right now, I only have a few dozen yuan left in my pocket. Recently, many people have asked me, Zheng Zheng, what are you going to do next? Work for hire to pay off your debts or continue to start a business? I want to say that if I only work for a salary, I probably won't be able to get back up in this life. If life doesn't go as planned, listen to my story. Last month, I was still a famous doctor in Shanghai, but now I'm just a loser with nearly 10 million yuan in debt, even after selling all my assets. In the past nine years, I've never seen life so harsh. Creditors surrounded me. My parents were old and weak. My children had grown up, and I was helpless. The road to repaying the debt left me exhausted, sleepless, and depressed. As a first-class hospital specialist, I once had a brilliant career and a happy family. In 2008, I invested in helping my cousin expand his business, from coal mines to supermarkets. But in 2016, he ran away, leaving behind a huge debt. Blind ambition and poor decisions pushed me into the abyss. It took me 10 years to build everything, but it collapsed overnight. Dad, I have been unfilial and have made you worry all your life. This year, I can't come home for Tet, and I can't take care of you. But don't worry, I'll take care of myself. Today, I'm truly helpless. Before, when I had money, I didn't care about it. At that time, all I valued was human relationships. But now, with not a penny left in my pocket, I finally understand what it means to be poor. Today, I spent the whole day trying to borrow money, but I couldn't get a single cent. I used to own three restaurants, a bandage factory, and an online celebrity training company. At that time, I had a house, a car, and everything in my hands. But now, I'm in such a miserable situation. I never imagined this would happen. I just want to tell everyone listening. When you have money, don't spend it lavishly and don't lend it easily, because you never know when you might fall into poverty and not be able to borrow even a penny. Then, you will understand what it means to be humiliated, miserable, and desperate. Shanghai, the most international city in China, looks glamorous on the outside, but it cannot withstand the economic downturn. If even state-owned enterprises with strong government support are struggling, how will private enterprises and individuals survive? Shanghai has relied on real estate, finance, and middle-class consumption to maintain its prosperity. But in the past two to three years, everyone has clearly seen what happened. Housing prices have plummeted, and many people had no time to react. In the blink of an eye, seemingly solid assets suddenly lost a third or even half of their value. Those who once boasted about their high-class lifestyle in Shanghai, owning multiple properties, sending their children to expensive international schools, and shopping lavishly, are now the first to be caught up in the economic collapse. The truly rich left long ago or have overseas assets to fall back on. Low-income earners never took out mortgages. Life was already difficult for them, and they had nothing to lose. But the middle class, who borrowed money to buy houses, cars, and investments, and sent their children to expensive educational programs, are the ones who have suffered the most. The real estate slump has devalued their mortgages. Companies have cut salaries and laid off employees, especially white-collar workers, as businesses have left or downsized. The collapse of the financial system, from P2P lending platforms and trust companies to a host of other investment products, has dragged countless middle-class investors down with it. The stock market has become a bottomless pit. No matter how you invest, there is no way out. Some say this is just a market cycle, a temporary fluctuation. But looking at the streets of Shanghai, even the busiest downtown areas are full of rental properties, with transfer signs everywhere. The memory of a luxurious, magnificent Shanghai has long since faded. Shanghai no longer has room for luxury. Industries that once flourished, such as international education, private health care, art auctions, and yachting, are now in a state of decline. The rich have all left, and those who remain dare not spend. In this recessionary economy, who would dare to buy a million-dollar jade here? Amid economic downturn and increasing financial pressure, fewer and fewer Shanghai residents are dining out. Rising living costs, unstable incomes, and the risk of unemployment have forced many to tighten their spending, prioritizing essential needs over eating out. Restaurants, from budget to high-end, have seen a sharp drop in customers, forcing many establishments to cut staff, or even close. Doing business in Shanghai has become incredibly difficult. Perhaps this is also my last day here. Today, I stand at the bottom of the abyss of fate, my heart filled with confusion and helplessness, as this restaurant is about to close. I am bankrupt, with hundreds of millions in debt, not knowing what to do. Last year, filled with beautiful expectations for the future, I invested all my capital into opening this European restaurant. At that time, I was full of faith and ambition, believing this would be a major step toward success. When it first opened, the restaurant was always packed with customers, and everyone gave endless compliments. I truly believed I could expand and grow even stronger. But then, reality delivered a painful slap in the face. The business world is like a battlefield. Everything changes unpredictably. In just two short years, the business has gone downhill. Before Tet, the restaurant was so empty and lifeless that I lost all motivation to continue. So today, I reluctantly close the restaurant, officially ending my entrepreneurial dream, at least for now. Not only did I fail to make any money, but I also lost everything. All my previous savings are gone.