According to Chinese media, thermal power generation, cinema and television, decoration, gardening, and aquaculture are among the top ten businesses in China that have reduced production this year.
Some suggest that the leading cause of the fall is the degradation of international relations and China’s economic development paradigm rather than the COVID-19 outbreak.
“Finance Eleven” has chosen the top ten industries that are shrinking compared to 2019 before the pandemic based on a sample examination of data for the first three quarters of 2021.
The sample consists of 52 enterprises in the decorating and horticulture industries. Total revenue fell 4.4 percent, but total operating profit fell 56 percent. There were five loss-incurred enterprises in 2019, with a total loss of 1,320 million yuan (about $210 million) and 2,200 Million yuan (about $350 million) in 2021. Because of the foreseeable challenges in the real estate business, it is expected that the decoration and horticulture industry will continue to decline its production scale in 2022.
There are 19 sample companies in the thermal power industry. Total revenue for the first three quarters of this year grew 19.8%, but total operating profit fell 93.8%. In the third quarter of last year, the complete loss of 11 companies was 8.7 billion yuan (about $1.4 billion). This year, the total loss increased 22 times.
According to a sample of 27 enterprises in the film and television industry, in the first three quarters of this year, overall revenue declined by 22.2 percent, and total operating profit decreased by 61.5 percent.
On Dec. 6, current affairs analyst Zhang Jianping stated that the loss of several industries in China is due to foreign relations, not the epidemic, as well as China’s asynchronous development strategy, which includes significant real estate development. It would still happen even if there were no outbreaks.
Cai Shenkun, a current affairs expert, added that the virus had not only affected China’s exports but had also increased them significantly. The main issue is that the policy system’s ineffective response has resulted in an economic downturn.
The national economy’s manufacturing industries are all linked. When a significant economic sector, such as real estate, goes bankrupt, it causes other sectors to go bankrupt as well.