"Is Grilling Skewers at Street Stalls an Unemployment Measure?" Criticism of 'Jwapan Economy' in China

Local Governments in Central Region Successively Ease Street Vendor Regulations
"Encouraging College Graduates to Become Street Vendors in the Digital Age... Desperate"

According to reports from CNN and others on the 15th (local time), some local governments in China, where unemployment rates have soared due to COVID-19, have introduced the "relaxation of street vendor regulations" card, but analyses suggest that the effect may not be significant.

There is a growing outlook that the "street stall economy" being promoted by Chinese local governments to reduce unemployment is unlikely to become a driving force to revive the Chinese economy.

Chinese people enjoying a meal on the barbecue street in Zibo City, Shandong Province.
Photo by AFP Yonhap News

According to the reports, Shenzhen City in Guangdong Province, China, has decided to allow street vendors in certain districts starting this September. Although they had been completely banned for reasons such as urban aesthetics and environmental hygiene management, this measure was introduced to counter the rising unemployment rate.

This move is analyzed to have emerged amid the severe impact on local small and medium-sized enterprises caused by COVID-19, with urban unemployment rates rising to worrisome levels.

In March this year, the unemployment rate for urban residents aged 16 to 24 in China was 19.6%, known to be the second highest ever. This means about 11 million young people living in cities are unemployed, and with 11.6 million university graduates entering society this year, the unemployment rate is expected to rise further.

Previously, similar street vendor allowance measures were introduced in Shanghai, Hangzhou in Zhejiang Province, and Beijing. Local governments in China, which had suppressed street vendors due to the COVID-19 pandemic, are now encouraging people to set up stalls and conduct business on the streets.

There are also success stories of the "street stall economy." Zibo City, an industrial city in eastern Shandong Province, is a representative example. Recently, the "Zibo Barbecue" video went viral on Chinese social networking services (SNS), making it popular as a tourist destination. Tourists love the charcoal-grilled meat skewers wrapped in thin bread with green onions sold at street stalls. The price is about 30 yuan (approximately 5,700 won) per serving.

As a result, Zibo City's consumption growth rate, which was -2% in January and February this year, sharply reversed within a month from March when the video went viral. The first quarter economic growth rate recorded 4.7%, thanks to the boom in retail, tourism, and food service industries, and consumption increased by 11% during the same period.

However, there are also analyses that there are limits to economic revival measures through the relaxation of street vendor regulations. Steve Chang, director of the China Research Institute under the School of Oriental and African Studies (SOAS) at the University of London, explained, "The Chinese government has not found any method beyond telling young people to become street vendors in terms of creating jobs or maintaining stability and order."

He pointed out, "It is a desperate sign that workers equipped with digital age skills or university graduates are focusing their efforts on street vending rather than creative thinking."

This content was produced with the assistance of AI translation services.