Summary of Key Points
This news report highlights the challenges faced by a small county in the central and western regions: its population has declined from 120,000 during the pandemic to 80,000, with a continuous outflow of young and middle-aged individuals; fiscal constraints have reduced job opportunities (especially for industries reliant on government spending and projects); local industries have failed to thrive (agriculture, tourism, and biomedicine are all struggling); the digital economy has impacted traditional retail businesses, and the benefits of digitalization have not reached this county; and grassroots governance and the cadre workforce are facing difficulties such as limited promotion opportunities, increased assessment pressure, and a crisis in public trust. To break this cycle, scientific reforms (such as reducing the burden on local authorities and optimizing assessment methods) are needed to stimulate vitality.
Detailed Analysis
#### 1. Population Decline and Job Loss: A Vicious Cycle
The county's population is dwindling rapidly: it went from 120,000 to 80,000, with some towns having just 1,000 residents. Why? On one hand, the number of newborns has decreased from 900 in 2024 to 800 in 2025. On the other hand, young and middle-aged people are leaving because there are no job opportunities in the county.
Employment in the county mainly relies on two sources: government-funded employees (9,000 people, including 5,000 permanent staff and 4,000 retirees) and government projects. However, with tighter finances, these groups have less money to spend, affecting businesses such as restaurants. The number of government projects has also plummeted from over 100 last year to almost none this year, forcing people to seek employment elsewhere, even abroad. This cycle of declining population leads to fewer job opportunities, which in turn drives more people to leave.
#### 2. Fiscal Strains and Economic Downturn: The Chain Reaction
The reduction in local government funding has a significant impact on the economy. For example, spending on official expenses (entertainment, business trips, and vehicles) has been cut by 60%, leaving government-funded employees with less disposable income. Restaurant owners report struggling to make ends meet, and there is a high turnover of business owners.
The lack of projects means fewer jobs for workers and contractors, who often have to seek work elsewhere or even abroad. The county's economy has come to a standstill.
#### 3. Lack of Local Industries: No Hope for Employment
The county's industries are weak:
- Agriculture: The pig farming industry was hit by the African swine fever.
- Tourism: Despite significant government investment, the county lacks attractive natural attractions and is not located on major transportation routes, so tourists do not visit.
- Transportation: With 14,000 vehicles and 40,000 people dependent on this industry, revenue has decreased due to economic downturn.
- Biomedicine: Only two companies in the county are viable: one produces low-value medical supplies (such as masks and cotton swabs), and the other treats psoriasis, but they lack raw materials and technological advantages to expand.
The government's ability to attract investment through tax incentives is also limited, further undermining economic development and job prospects.
#### 4. The Digital Economy Challenges Traditional Businesses
Online shopping has become increasingly popular, with young people and even middle-aged adults turning to platforms like Pinduoduo and Douyin for clothing and other goods. This has put local retailers in a difficult position: store owners are forced to relocate to the east to engage in e-commerce, and supermarkets can only sell cheaper products (e.g., 5-yuan towels) to elderly customers who do not use the internet.
The digital economy has created new job opportunities in the east, but these have not benefited the county, as the core aspects of digital transformation (design and sales) remain there, leaving the county with limited opportunities.
#### 5. Difficulties for Cadres and Governance:
Reforms have merged multiple departments, reducing leadership positions and limiting career advancement for capable middle-level officials. Cadres face pressure from both higher-ups (strict assessment requirements) and lower-level residents (increasing conflicts over services and funding). They are also burdened with unrealistic targets and lack of support from their superiors, leading to a sense of frustration and burnout.
Solutions
The report suggests that the key to solving these problems lies in reducing the burden on local authorities and reforming the assessment system to include non-economic indicators that protect small businesses. Additionally, institutions should be restructured to ensure resources are used more effectively, thereby boosting the enthusiasm of both cadres and residents. Only with these changes can the county navigate its transformation period smoothly.