Rural Chinese workers become unlikely livestreamers amid slowing economy, fewer prospects

BEIJING: After dropping out of high school, Mr Chu Guohan hopped around several big cities in China to work in restaurants, factories, nightclubs and even movie sets.

He had followed his friends to earn more money. But as the world’s second-largest economy slowed down and prospects in its megacities dwindled, migrant workers like them realised they had little to fall back on.

Mr Chu, who hails from Wuyi county in Zhejiang province, decided to return to his hometown in 2018 after a decade away.

He then turned to one of China’s fastest-growing industries – livestreaming.

His app of choice was Douyin, the Chinese twin of TikTok, which he used to sell local produce such as smoked bacon and wine. 

The 35-year-old even hired his fellow villagers to help him take videos.

“When I came back and did livestreaming, many people didn't understand. They said that I must be crazy jumping around in the field, chopping bamboo, and talking nonsense all day long,” he quipped to CNA.

“My initial idea was to promote my hometown and maybe I will be able to earn an income of 30,000 (US$4,100) to 50,000 yuan a year.”

The reality of the nation’s livestreaming phenomenon was much sweeter for Mr Chu. The next few years saw him accumulate over a million followers and rake in profits of more than 1,000 yuan (US$138) on good days – a much better income compared with what he used to earn in the cities.

MORE THAN 15 MILLION PROFESSIONAL LIVESTREAMERS

If not for the rise of livestreaming platforms like Douyin and Kuaishou, Mr Chu could have followed generations of migrant workers who continue toiling in the cities, where they live in cramped dormitories and rarely see their loved ones. Many already sold their land in the countryside or have little alternative.

There are still 170 million migrant workers and their accompanying family members who have not yet settled in the cities and towns where they work, according to official data.

While some see few options, livestreaming platforms have levelled the playing field for those savvy enough to use them, like Mr Chu.

In 2023, there were more than 15 million professional livestreamers in China producing content on everything from entertainment to infomercials. Popular influencers peddle products like lipstick, food and cars.

Livestreaming has even produced millionaires and billionaires, with nearly half of the country’s internet users shopping through livestreaming by mid-2023. 

In the countryside, so-called e-commerce villages have sprung up, comprising at least 100 active online shops per village.

Chinese authorities have been trying to expand these villages as part of plans to revitalise rural areas, amid the country’s sluggish economy and increasing rate of unemployment.

Mr He Yadong, a spokesman from the Ministry of Commerce, previously said that developing rural e-commerce was an important measure for China to innovate business models.

“It's also an approach to transform agricultural development patterns, increase farmers' incomes, and better meet rural consumption demands,” Mr He noted.

NEED FOR REGULATION

Still, success stories like Mr Chu's are few and far between among the country’s 300 million migrant workers.

The livestreaming industry, which peaked during the COVID-19 pandemic, is becoming increasingly saturated as more look for a rare lifeline amid an uncertain economic outlook.

Experts said this has made it difficult for newcomers to stand out and outshine other livestreamers. Some resort to crass tactics to get more views.

Dr Yan Wu, Associate Professor in Media and Communications Studies at Swansea University, said there is a need for market regulation as livestreaming covers not just e-commerce but a wider field of talent.

“The content of streaming could be vulgar and sexual,” she told CNA’s East Asia Tonight.

“(The) industry poses this new challenge because in the past, when you think of the media industry, it has clearly separated fields – journalism, entertainment, advertising, etc.

“But the streaming industry seems to combine all these different sectors together. So the key thing is, who's accountable?”

She pointed to a “huge enthusiasm” in China for new technologies like virtual reality. Virtual influencers created with artificial intelligence have also gained steam in recent years. 

“When the technology keeps advancing under the market, (in) certain areas, the market reaches a saturation point. But there are new ways, new strategies for differentiation and a plug into the niche segment will be able to provide a new economic growth point,” Dr Yan said.

For Mr Chu, it was a no-brainer to switch career paths rather than continue living in the underbelly of China’s biggest and wealthiest cities.

"When you’re in the city, your salary may be just a few thousand yuan, and the work is hard and tiring. Maybe when you’re in the moment, you think the money comes easily,” he said.

“But in the long run, with automation, you risk becoming obsolete; you will have no value in the future."