According to a Bloomberg study, China’s rural towns are seeing a rebirth as megacities become less appealing

An increasing number of Chinese professionals are choosing the prospect of success in their hometowns over the allure of megacities.

According to a Bloomberg survey, people are choosing the peace and quiet of rural areas over busy metropolitan centers due to financial strains and a desire for a higher standard of living.

Zhao Xiaowei, the person who decided to go back to Dandong from Beijing, was mentioned in the Bloomberg story. This reflects a trend that is changing China’s demographic landscape as young professionals flee the exorbitant prices and fierce competition that are common in big cities.

A change in migration trends is indicated by data from Shanghai-based consultancy MetroDataTech, which shows a net exodus of inhabitants from China’s tech powerhouse Shenzhen and financial capital Shanghai in 2023.

Smaller communities are seeing a rise in economic activity as a result of rising consumer expenditure and entrepreneurship, whereas economic chances in megacities are diminishing.

Growing disposable incomes and falling costs of living in smaller cities have made it easier for businesses to expand, drawing in both local company owners and global companies looking to take advantage of this new market.

Multinational companies like Yum China Holdings Inc. and Domino’s Pizza China operator DPC Dash Ltd. are extending their reach beyond megacities as consumer spending picks up speed in smaller cities.

By 2026, Yum China intends to have more than 5,000 locations, the majority of which will be found in less desirable cities.

In a same vein, in response to the growing demand for bubble tea and western fast food, local fast-food businesses such as Fuzhou Tastien Catering Operation Co. and Mixue Bingcheng Co. are expanding their reach into tier 3 and below cities.

Both economic and lifestyle factors contribute to the exodus of people from megacities to smaller communities.

People who live in smaller cities tend to have deeper family connections, a slower pace of life, and steady employment opportunities.

According to Bloomberg, Guan Yinglu embodies this idea in her choice to move from Shanghai to Luzhou, putting her family and personal fulfillment ahead of the rigors of living in a major metropolis.

People like Guan find comfort in the sense of community and richer life experiences that smaller towns provide, even in the face of declining purchasing power.

Even if China’s economy is changing due to the trend toward smaller cities, there are still difficulties, especially in the less developed areas.

The unequal distribution of resources and economic possibilities was brought to light by Ernan Cui, a consumer analyst at Gavekal Dragonomics. He pointed out differences between the eastern and southern regions, which are benefiting from urban-rural integration, and other regions that are still experiencing economic stagnation.

Furthermore, some people are still drawn to megacities.

Small town potential remains positive for entrepreneurs such as Ymir Li, despite the intricacies of the mechanics of urban migration.

Li’s accomplishment in starting a Heytea franchise in a location in the Southwest highlights the vibrant entrepreneurial culture seen in smaller communities.

Li has strengthened the local economy and produced jobs by using the many skill sets and experiences that returnees have earned in megacities.