China’s workers endure a life of pay cuts and side hustles

Chinese state firm employee Zhang Jinming makes up for a 24% cut to his salary by delivering food for three hours every night after work and on weekends — and hopes he can avoid awkward encounters with colleagues.

- LIANGPING GAO ELLEN ZHANG

"Being a part-time delivery person while working for a state-owned enterprise isn’t exactly considered respectable," said Mr Zhang, whose real estate firm pays him 4,200 yuan ($585, or 19,000 baht) per month, down from 5,500 yuan.

While China has supported economic growth by keeping its ports and factories humming, the lack of real demand has hit profits, in turn squeezing workers like Mr Zhang through wage cuts and forcing them to moonlight.

"There's just no other way," added the 30-year-old, who rides his scooter until 11.30 pm, making 60-70 yuan per evening. "The pay cut has put me under huge pressure. Many colleagues have resigned and I took over their workload."

China's economy posted robust 5.2% growth in the second quarter, showing its export-heavy model has so far withstood US tariffs. But beneath the headline resilience, cracks are widening.

Contract and bill payment delays are rising, including among export champions like the autos and electronics industries and at utilities, whose owners, indebted local governments, have to run a tight shop while shoring up tariff-hit factories.

Ferocious competition for a slice of external demand, hit by global trade tensions, is crimping industrial profits, fuelling factory-gate deflation even as export volumes climb. Workers bear the brunt of companies cutting costs.

Falling profits and wages shrank tax revenues, pressuring state employers like Mr Zhang's to cut costs as well. In pockets of the financial system, nonperforming loans are surging as authorities push banks to lend more.