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China’s Economy Faces Another Hurdle: Darkened Movie Theaters | China’s Economy Faces Another Hurdle: Darkened Movie Theaters |
(8 days later) | |
SHANGHAI — To the long list of obstacles holding back the Chinese economy when the world needs it most, add one more: padlocked movie theaters. | SHANGHAI — To the long list of obstacles holding back the Chinese economy when the world needs it most, add one more: padlocked movie theaters. |
The country’s more than 12,000 cinemas have remained stubbornly closed. Reopening them is politically difficult, as the order to keep them shut came from none other than Xi Jinping, China’s top leader. | The country’s more than 12,000 cinemas have remained stubbornly closed. Reopening them is politically difficult, as the order to keep them shut came from none other than Xi Jinping, China’s top leader. |
The rest of the country is trying to get back to business as usual after a devastating coronavirus outbreak this year. Factories, shops, restaurants and bars reopened as much as three months ago and are trying to recapture business lost during China’s biggest crisis in a generation. | The rest of the country is trying to get back to business as usual after a devastating coronavirus outbreak this year. Factories, shops, restaurants and bars reopened as much as three months ago and are trying to recapture business lost during China’s biggest crisis in a generation. |
Some shop owners and mall operators say they keenly miss the business of moviegoers, who once filled restaurants and retail outlets with after-show business. | Some shop owners and mall operators say they keenly miss the business of moviegoers, who once filled restaurants and retail outlets with after-show business. |
“The merchants around the theater are now miserable,” Gao Dezhi, a movie theater manager in Liaoning Province in northeastern China, wrote on the microblogging service Weibo in late May. “The original cinema visitor flow is gone.” | “The merchants around the theater are now miserable,” Gao Dezhi, a movie theater manager in Liaoning Province in northeastern China, wrote on the microblogging service Weibo in late May. “The original cinema visitor flow is gone.” |
Data released on Monday showed that Beijing is still struggling to get the country’s economy, the world’s second largest after the United States, back in business, although conditions are less grim than they were earlier this spring. | Data released on Monday showed that Beijing is still struggling to get the country’s economy, the world’s second largest after the United States, back in business, although conditions are less grim than they were earlier this spring. |
Retail sales in May fell for the fifth month in a row, China’s National Bureau of Statistics said, dropping an unexpected 2.8 percent from May of last year despite increases in sales of cars and groceries and a rise in online purchases. Still, it was a strong improvement over sharper drops in recent months. | Retail sales in May fell for the fifth month in a row, China’s National Bureau of Statistics said, dropping an unexpected 2.8 percent from May of last year despite increases in sales of cars and groceries and a rise in online purchases. Still, it was a strong improvement over sharper drops in recent months. |
Industrial production statistics for May, also announced on Monday, showed slow but steady improvement. Export statistics for May, released last week, indicated a deterioration since April as overseas demand withered with the spread of the virus. | Industrial production statistics for May, also announced on Monday, showed slow but steady improvement. Export statistics for May, released last week, indicated a deterioration since April as overseas demand withered with the spread of the virus. |
China is one of the world’s most important growth engines. Getting the world economy back on its feet will be exceedingly difficult if Beijing cannot get China back up to full speed. But widespread job losses have shaken the public’s confidence after the country shut down vast swaths of the economy to contain the outbreak. Many are less willing or able to spend. | China is one of the world’s most important growth engines. Getting the world economy back on its feet will be exceedingly difficult if Beijing cannot get China back up to full speed. But widespread job losses have shaken the public’s confidence after the country shut down vast swaths of the economy to contain the outbreak. Many are less willing or able to spend. |
The country’s workers will face further challenges in coming months as a global economic slowdown, triggered by the pandemic, reduces the world’s demand for the smartphones, appliances, clothes and other goods churned out by China’s factories. | The country’s workers will face further challenges in coming months as a global economic slowdown, triggered by the pandemic, reduces the world’s demand for the smartphones, appliances, clothes and other goods churned out by China’s factories. |
China itself still faces risks from the coronavirus. A new outbreak in Beijing has prompted the authorities to lock down parts of the city. | China itself still faces risks from the coronavirus. A new outbreak in Beijing has prompted the authorities to lock down parts of the city. |
With those risks in mind, officials have appeared nervous about reopening movie theaters. Cinemas closed in late January, as the coronavirus raced out of the city of Wuhan to hit other parts of the country. | With those risks in mind, officials have appeared nervous about reopening movie theaters. Cinemas closed in late January, as the coronavirus raced out of the city of Wuhan to hit other parts of the country. |
Their continued closure seemed assured after Mr. Xi said they were not needed. Except for a few brief experiments in several provinces, they have stayed shut ever since. | Their continued closure seemed assured after Mr. Xi said they were not needed. Except for a few brief experiments in several provinces, they have stayed shut ever since. |
“If anyone wants to watch a movie, just watch it online,” Mr. Xi said during a visit on March 31 to Hangzhou in Zhejiang Province in east-central China. | “If anyone wants to watch a movie, just watch it online,” Mr. Xi said during a visit on March 31 to Hangzhou in Zhejiang Province in east-central China. |
In a country that is gradually drifting toward one-man rule, no one has dared to challenge that decision publicly. It is part of a pattern of sometimes extreme deference to Mr. Xi that has repeated itself with increasing frequency in recent years. | In a country that is gradually drifting toward one-man rule, no one has dared to challenge that decision publicly. It is part of a pattern of sometimes extreme deference to Mr. Xi that has repeated itself with increasing frequency in recent years. |
Just about everything else has opened up across practically all of China. Even live theater has reopened, with customers allowed to occupy every other seat as part of social distancing. In Shanghai, a play has just opened that celebrates how people in Wuhan carried on everyday life as the coronavirus epidemic started there and was then eventually brought under control. | Just about everything else has opened up across practically all of China. Even live theater has reopened, with customers allowed to occupy every other seat as part of social distancing. In Shanghai, a play has just opened that celebrates how people in Wuhan carried on everyday life as the coronavirus epidemic started there and was then eventually brought under control. |
Malls around the world rely to some extent on cinemas to draw people out of their homes, with the hope that they will stay after the movies to dine or go shopping. But regulatory peculiarities have made Chinese shopping malls especially reliant on cinemas to generate foot traffic. | Malls around the world rely to some extent on cinemas to draw people out of their homes, with the hope that they will stay after the movies to dine or go shopping. But regulatory peculiarities have made Chinese shopping malls especially reliant on cinemas to generate foot traffic. |
Shopping malls in the United States and Europe often cover many acres in suburban locations where land is fairly cheap. Visitors frequently arrive by car. People may come and go from cinemas without ever walking past or through another business at the same mall. | Shopping malls in the United States and Europe often cover many acres in suburban locations where land is fairly cheap. Visitors frequently arrive by car. People may come and go from cinemas without ever walking past or through another business at the same mall. |
But China has stringent regulations to limit low-rise urban sprawl. Car ownership is also far less widespread. So shopping malls need to be tall and close to mass transit. | But China has stringent regulations to limit low-rise urban sprawl. Car ownership is also far less widespread. So shopping malls need to be tall and close to mass transit. |
Malls in China typically occupy five to nine floors of a tall building. Cinemas are often on the top floor of the mall. Moviegoers pass many shops and restaurants, ascending and descending a seemingly interminable series of escalators. | Malls in China typically occupy five to nine floors of a tall building. Cinemas are often on the top floor of the mall. Moviegoers pass many shops and restaurants, ascending and descending a seemingly interminable series of escalators. |
A study four years ago by the RET China Commercial Real Estate Research Center found that more than half of the people who went to movies at a shopping mall in China bought food and drinks at the mall. More than 40 percent of moviegoers also went shopping, the study found. | A study four years ago by the RET China Commercial Real Estate Research Center found that more than half of the people who went to movies at a shopping mall in China bought food and drinks at the mall. More than 40 percent of moviegoers also went shopping, the study found. |
Shopping malls and the stores inside are not the only businesses that are hurting these days because of the closure of cinemas. | Shopping malls and the stores inside are not the only businesses that are hurting these days because of the closure of cinemas. |
According to Tianyancha, a Chinese data service on businesses, at least 1,542 cinema companies and movie studios have gone out of business this year. More than 8,000 movie production firms, movie consulting companies and other businesses related to the industry have also failed this year, according to the data. | According to Tianyancha, a Chinese data service on businesses, at least 1,542 cinema companies and movie studios have gone out of business this year. More than 8,000 movie production firms, movie consulting companies and other businesses related to the industry have also failed this year, according to the data. |
The mysterious death of a Chinese movie executive captured national attention late last week. Bona Film Group, a Chinese movie studio and cinema chain that is still in business, announced that one of its best-known executives, Huang Wei, had fallen to his death in an affluent Beijing neighborhood. | The mysterious death of a Chinese movie executive captured national attention late last week. Bona Film Group, a Chinese movie studio and cinema chain that is still in business, announced that one of its best-known executives, Huang Wei, had fallen to his death in an affluent Beijing neighborhood. |
The company’s announcement said that he had suffered from insomnia and depression and that there was no sign of foul play. The police confirmed his death in a statement but provided no details. | The company’s announcement said that he had suffered from insomnia and depression and that there was no sign of foul play. The police confirmed his death in a statement but provided no details. |
Once Mr. Xi makes a decision these days, lower-ranking officials sometimes carry it out so swiftly that new difficulties pop up. The closure of cinemas is not the only example. | Once Mr. Xi makes a decision these days, lower-ranking officials sometimes carry it out so swiftly that new difficulties pop up. The closure of cinemas is not the only example. |
When Mr. Xi ordered northern Chinese provinces to cut smog in late summer of 2017, cadres junked coal-fired school stoves without checking if enough natural gas would be available to provide heat instead. When Mr. Xi also ordered weeks later that Beijing’s population be reduced, local officials bulldozed the homes of tens of thousands of migrant workers with little notice. | When Mr. Xi ordered northern Chinese provinces to cut smog in late summer of 2017, cadres junked coal-fired school stoves without checking if enough natural gas would be available to provide heat instead. When Mr. Xi also ordered weeks later that Beijing’s population be reduced, local officials bulldozed the homes of tens of thousands of migrant workers with little notice. |
A bitterly cold early winter followed, producing nationwide anger over scenes of shivering schoolchildren and homeless migrants. | A bitterly cold early winter followed, producing nationwide anger over scenes of shivering schoolchildren and homeless migrants. |
If the cinema order does not end soon, said Mr. Gao, the movie theater manager, the collateral economic damage could be significant. “If they do not open again,” he said, “many merchants around theaters will face the danger of closing.” | If the cinema order does not end soon, said Mr. Gao, the movie theater manager, the collateral economic damage could be significant. “If they do not open again,” he said, “many merchants around theaters will face the danger of closing.” |
Coral Yang and Lin Qiqing contributed research. | Coral Yang and Lin Qiqing contributed research. |