Exploring the Night Economy in Major Chinese Cities

Night Economy Initiatives in Henan Province

Central China’s Henan province, home to the world’s largest iPhone factory, recently unveiled measures to boost consumer spending at night to counteract declining exports. The provincial development and reform commission encouraged local governments to utilize reserve land to create distinctive nighttime fairs and supporting facilities like parking lots and office spaces.

Enhancing Nighttime Activities

• Music Festivals
• Theatre Performances
• Art Exhibitions
• Sporting Events
• 24-hour Bookstores
• Late-night Cafeterias
• Specialty Night Fairs

The commission stated, “The night economy has become a new engine for business, cultivating markets, promoting employment, and expanding consumption.” Various businesses are encouraged to adopt digital upgrades and promote nighttime live-streaming shopping. Furthermore, operators of night fairs with monthly sales below 100,000 yuan (approximately US$14,138) will be exempt from tax.

Impact of Declining Exports

Henan aims to mitigate a significant decline in exports, with a 15% drop in value to 244.1 billion yuan (US$34.5 billion) in the first seven months of the year. Although retail sales in the province rose by 5.7% to 1.75 trillion yuan in the first eight months, the central government is also boosting domestic demand via trade-in schemes.

Transforming Cities into Nightlife Capitals

Major cities like Shanghai, Beijing, Guangzhou, and Shenzhen have implemented measures to stimulate nighttime consumption since 2019, striving to become world-class nightlife capitals. In 2019, China's State Council reaffirmed the importance of nighttime businesses as a key aspect of boosting national consumption.

With over 60% of China's consumption occurring at night, the market size of the night economy has surged, from 22.54 trillion yuan in 2018 to 50.25 trillion yuan in 2023, showcasing its critical role in China’s economic landscape.