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The end of the Chinese dream?

China’s economic slowdown leaves a trail of ghost towns and millions of ordinary workers struggling to survive.

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101 East
Coal miners come off their shift in Southwest China. Beyond the gruelling conditions they endure, the life of miners is increasingly hard - with falling wages, and layoffs, caused by the slump in commodity prices. [Steve Chao/Al Jazeera]
By Steve Chao
Published On 19 Sep 2016

For decades, China’s economic prowess has powered world growth. China’s rise as a modern nation has been remarkable and the country’s leaders often tell the world that they managed to lift more than 600 million people out of poverty in just a few decades.

But the boom times are over: China’s economy is slowing and cracks in the system are starting to appear. With the Chinese economy faltering, building has ground to a halt, leaving ghost towns and abandoned construction sites across the country.

Some economists say that the country’s building boom never delivered real prosperity, and that government spending has been poorly managed.

They warn that with China’s debt mounting at an alarming pace, the country’s economy could collapse.

In 2005, China owed 164 percent of its gross domestic product, but today it has almost doubled. The mountain of debt is piling up much faster than the economy is growing.

Despite the looming debt crisis, the government continues to encourage citizens to take on even more debt, buy more property and clear the over supply. Buying property in China used to be one of the safest investments, but the bubble has burst in many cities – leaving many Chinese with debt they cannot pay back.

For years officials promised that everyone would share in economic prosperity, but as the markets slow and debts rise, millions of ordinary workers are hurting. China’s government says it will let go of five to six million workers from its factories and mines. Many of the workers are struggling to survive and feel left out of China’s success.

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For more, watch the 101 East documentary The End of China Inc?

101 East AlJazeera
Once it was the lifeblood of many Chinese towns, but global demand for coal has slumped. Faced with an economic slowdown, China’s government says it will let up to six million workers go from its factories and mines, its boldest retrenchment effort in two decades. [Steve Chao/Al Jazeera]
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101 East AlJazeera
At this coal mine in Southwest China, workers are only given cotton masks, which do little do keep harmful coal dust from reaching their lungs. Many end up with lung cancer. While they helped build the country, coal miners are facing lower wages and layoffs, leaving them feeling left behind by modern China. [Steve Chao/Al Jazeera]
101 East AlJazeera
Despite being billions of dollars in debt, a steel plant splutters on in Fushun, China. The provincial government has said it will sell stakes in nine state-owned enterprises to stimulate its stagnant economy, and revamp its lumbering and debt-ridden state sector. [Steve Chao/Al Jazeera]
101 East AlJazeera
Overcapacity and souring debts are twin problems facing many of the country's factories. Many fear that China's mounting expenses will lead to an economic crash that will affect the world more dramatically than the 2008 global financial crisis. [Steve Chao/Al Jazeera]
101 East AlJazeera
Shenfu City in northeastern China is a ghost town of epic proportions. The 22 sq km town is largely deserted. Since China's economic slowdown, many of the building projects have stalled or been abandoned. [Steve Chao/Al Jazeera]
101 East AlJazeera
The ill-fortune of the new city of Shenfu reflects China's economic woes. Local government spent $16m building the city's 60-storey monument, the 'Circle of Life', which was intended to attract tourists. But with the economy faltering, few have come and many of Shenfu's building projects have stopped. [Steve Chao/Al Jazeera]
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101 East AlJazeera
Developers spent $300m to build this state-of-the-art water park in Tieling, China. The 30,000 square-metres facility was scheduled to open in the summer of 2015, but construction stalled – another victim of the economic slowdown. [Steve Chao/Al Jazeera]
101 East AlJazeera
China has a number of famous landmarks, not least its Great Wall. But developers continue to try outdo each other. In Jinzhou, construction began on a fake Palm Island, modelled on Dubai's. Meant as a retirement complex, building stopped as the economy slowed down. [Steve Chao/Al Jazeera]
101 East AlJazeera
A worker at a scrapyard in Fushun breaks down old factory machinery. A once-booming business, the global price of steel has collapsed and workers have been laid off or are working part time. The government has said it will lay off up to six million workers in its state-owned enterprises in coming years. [Steve Chao/Al Jazeera]
101 East AlJazeera
Stairs to nowhere. Abandoned high-rise buildings form hundreds of ghost towns throughout China. Economists say these failed projects highlight years of poor government planning and unchecked spending that tells the real story of China's "economic rise". [Steve Chao/Al Jazeera]