Once targeted by officials, street vendors make unexpected comeback in China

Wuling Motors Holdings

05/06/2020 09:05

* Authorities loosen rules on roadside vending in slow
economy
    * Mass joblessness, social stability a major concern
    * Government focuses on low-wage earners with no financial
backup 

    By Lusha Zhang and Ryan Woo
    BEIJING, June 5 (Reuters) - Three weeks ago, Beijing
authorities swooped in on Shan Peng and her makeshift street
stall, seizing her merchandise - yogurt and casual pants - and
even her electric tricycle. 
    She was used to police evictions.  
    "Just raise your gun an inch, sir, and we peddlers would be
able to get by," she would say, begging them to let her off.
    In the same busy alley today, the 51-year-old was selling
shrink-wrapped bacon out of a cardboard box - unharassed.
    Shan hoped to take home at least 100 yuan ($14) a day. She
has mouths to feed - her elderly mother, a dog she rescued from
a shelter, and herself, a cancer patient. 
    Street stalls, seen officially as a blight on China's
modernising urban landscape, are making an unexpected comeback
in a year of rare economic pain. 
    At the annual session of parliament last month, the
livelihoods of ordinary people were widely discussed.
Afterwards, Premier Li Keqiang told reporters 600 million people
still live on monthly salaries of 1,000 yuan. 
    The spectre of mass unemployment has sharpened the focus of
China's top leadership on low-income groups with little
financial backup to cope with job losses. 
    In a U-turn, authorities said last week local governments
will not be assessed by the number of roadside vendors in their
cities this year. In the past, municipal officials were awarded
high marks for eradicating hawkers. 
    The premier also gave his blessing. During a visit to a
seaside town in Shandong province, Li said the "street stall
economy" was the light of humanity and the vitality of China.   
  
        
    READY, GET SET
    With uncharacteristic speed, cities like Shanghai and
Chengdu have taken steps to promote their street stall
economies. Even Wuhan - former epicentre of China's COVID-19
outbreak - joined in as the coronavirus threat receded. 
    E-commerce giants pledged support. Alibaba  BABA.N  and
JD.com  JD.O  said they would sell merchandise to street-stall
owners on credit. Pinduoduo  PDD.O  will offer discounts on a
range of "must-haves" for setting up a stall such as flashlights
and small fans. 
    Wuling Motors  0305.HK  said a newl mini truck specially
designed for street stalls received more orders on Wednesday
alone than all of May, official media reported. Its Hong Kong
shares rose over 200% this week.
    Dongfeng Motor Group  0489.HK  and Jiangling Motors Corp
(JMC)  000550.SZ  said some of their vans can be modified to
suit vegetable sellers or BBQ street food vendors.
    Meanwhile, a PDF book of unknown authorship on how to be a
successful street peddler found fame on social media this week. 
    According to "The Secret Manual of Street Stall Business",
only the latest mobile phones must be sold, and there should be
no displays of bras and panties, for "no young girl would dare
to buy them in the open".
    
    LUNCH MONEY
    Some economists say street stalls will not make much
difference to gross domestic product, but reflect the enormous
pressure on the government to stabilise employment and curb any
social unrest.  
    "It's an emergency and temporary solution to the
unemployment woes brought on by the coronavirus," said Nie Wen,
economist at Shanghai-based Hwabao Trust.
    Wang Kang, 38, works at a mobile payment company. But with
his salary slashed by 30%, he started hawking t-shirts and toys
in the evenings. 
    "I'm here because I need the money," he said. "Even if it's
just tens of yuan per night, that's enough for lunch."
    Yi Shaohua, a researcher at the Chinese Academy of Social
Sciences, China's top state think-tank, said the street stall
campaign will at least help lift people's spirits.
    "The upshot is it'll get people out of their homes, add
liveliness to the streets and thus help boost economic
confidence," Yi said.

 (Reporting by Lusha Zhang and Ryan Woo, adiitional reporting by
Yilei Sun; Editing by Giles Elgood)
 ((LushaZhang1@thomsonreuters.com; 8610-56692106;))