Arab Press

بالشعب و للشعب
Friday, Aug 22, 2025

As China’s ‘vendor economy’ goes from state approval to pariah, analysts see synergies with commercial real estate market

As China’s ‘vendor economy’ goes from state approval to pariah, analysts see synergies with commercial real estate market

Premier Li’s call for loosening of controls on street vendors swiftly rejected by Shanghai, Beijing city authorities. Cushman & Wakefield sees merits in promoting concept as a way to spur employment and synergies with real estate market

China’s street vendor economy is getting some mixed signals from municipal governments after an apparent endorsement from the State Council, causing confusion about the role of small businesses in the midst of a slump.

Since Premier Li Keqiang called for a loosening of controls on small vendors on the streets of Yantai in Shandong province, the message has been interpreted as a nod for mobile stalls to alleviate an unemployment crisis and provide an income avenue for millions of workers displaced by the coronavirus pandemic.

The endorsement powered a short-lived rally in stocks of companies that produce everything from minivans to kitchenware – the kind of things a small street-level vendor might need – on the Shanghai stock exchange. Within days, Beijing city authorities promptly killed the euphoria, branding the vendor the system as “unhygienic and uncivilised.”

Gordon Liu, head of North China capital markets at Cushman & Wakefield, suggests looking into the merits of the “vendor economy” and how it can generate employment while creating synergies within the mainland commercial property market.

“In essence, the new idea [of the vendor economy] aims to boost spending and foot traffic by investing more time, land and real estate resources to bolster commercial activities around the country,” Liu said. “It can have rosy prospects” with meticulous planning and clever ways to attract shoppers, he added.

It is more likely to succeed than fail, as an array of tech platforms, including Tencent Holding’s ubiquitous app WeChat and mobile payments platform Alipay announced new plans to help street vendors and smaller retailers recover from the economic slump.

China’s economy shrank 6.8 per cent last quarter, its first contraction since 1992 and the worst since the Mao Zedong era, due to factory shutdowns caused by the Covid-19 outbreak in January. China’s jobless rate climbed to an all-time high of 6.2 per cent in February, a level some analysts say underestimated the true picture on the ground.

Despite Li’s remarks, Beijing and Shanghai have said roaming vendors and roadside stalls do not fit in with the strategic positioning of the cities. Their presence would put visible pressure on urban management, environment, hygiene and traffic.

Liu said the vendor economy could encompass nighttime businesses, allowing for better use of idle space along established shopping streets in developed cities.

“For big cities like Beijing and Shanghai, low-priced consumer goods offered by roadside stalls are not supposed to be targeted as the local governments attempt to stimulate consumption,” he added. “The vendor economy can have a synergy with nighttime businesses and it will eventually benefit commercial properties.”

Shopping centre tenants, or well-known retail brands in clothing, food and electronics sectors, can set up kiosks during extended business hours on the bustling shopping streets or outside commercial properties to woo more shoppers, said Liu.

Zhou Lingzi, a senior manager with a state-owned commercial property operator, sees the idea as a “win-win” tactic, one which can lead to higher retail traffic and extra business hours for tenants.

“We will need the local authorities to draw up proper guidelines before taking a step forward in enforcing the plan,” he said. “As retailers rake in higher sales, mall owners will attract more tenants.”

Since last July, governments of Shanghai, Beijing, Guangzhou and Shenzhen have unveiled plans to stimulate nighttime consumption, before the viral outbreak sent everyone into home isolation.

The State Council, China’s cabinet, approved some 20 measures to spur spending, including permitting longer hours for some businesses and the creation of late-night business zones and 24-hour convenience stores.

“It all comes down to the point of innovating the business model based on each city’s own characteristics to lure consumers,” Liu said.




Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Trump Backs Putin’s Land-for-Peace Proposal Amid Kyiv’s Rejection
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
United States Sells Luxury Yacht Amadea, Valued at Approximately $325 Million, in First Sale of a Seized Russian Yacht Since the Invasion of Ukraine
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
Germany Enters Fiscal Crisis as Cabinet Approves €174 Billion in New Debt
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Russia Formally Recognizes Taliban Government in Afghanistan
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Mediators Edge Closer to Israel-Hamas Ceasefire Agreement
Germany Seeks Taliban Deal to Deport Afghan Migrants
Emirates Airline Expands Market Share with New $20 Million Campaign
Robots Compete in Football Tournament in China Amid Injuries
×