- “Street vendor economy” to help revive the economy. Amid unprecedented employment pressures caused by the pandemic, China has turned to “street vendor economy” to boost the economy. This policy change was piloted by Chengdu city government in Mar 2020 and then promoted by Premier Li Keqiang during the “Two Sessions” in May. Several provinces and municipalities closely followed up afterward, allowing roadside booths, food stalls, mobile vendors in designated areas as long as the latter satisfy sanitary conditions and don’t interrupt traffic or local life.
- Primary goal is to offer job support. We believe the intention of encouraging street vendors is primarily to expand job opportunities. The outbreak of COVID-19 took a toll on employment and household income growth. Low-income, low-skilled service sector employees and migrant workers are among the hardest hit populations according to our previous report (link). By YE18, 153 million people were employed in wholesale and retail sector. Street stalls and mobile vendors are therefore ideal for these displaced employees to become self-employed in a convenient and economically viable way. According to the local government, Chengdu has added over 100,000 job posts by allowing street businesses and mobile vendors.