Will Online Startups Compromise the Real Economy?

Dong Mingzhu， Chairperson of Zhuhai-based Gree Electric Appliances Inc.， recently said in a China Central Television dialogue program that， nowadays， many young people born in the 1990s are unwilling to work in the real economy （the part of the countrys economy that produces goods and services）， preferring to open online shops making around 2，000 yuan （$300） a month， and not wanting to be restricted by company rules. “This trend poses a hidden risk to the nations economic development. The mushrooming of online shops not only drastically reduces [the number of] physical stores， but the trend is also detrimental to the whole of society.”

Well-known for her controversial remarks， Dong once again provoked heated debate on whether the virtual economy will threaten the real economy among netizens. Some argue that an overdone virtual economy will compromise the root of the real economy and pose risks to the stability of the economy and society as a whole. However， others maintain opening online shops instead of getting office jobs is the youths way to express their freedom of choice， while establishing online businesses is a good way of alleviating the pressure of unemployment.

PRO

Wu Xu Government employee in Jiangsu Province

While most people rebuke Dongs remarks， I agree with her. Take my own child for example. After graduating from university， he got a job as a general managers assistant in a company but resigned after just three months. He complained about frequent overtime and being criticized by managers for any mistakes. He felt so tired and aggrieved that he finally decided to quit the job， arguing that many of his classmates had opened online shops and made easy money as their own bosses.

I had little choice but to give him a sum of money， which he used to open an online shop. One year later， however， he had lost the whole amount. He realized how unrealistic his business dream was and returned to the company where he used to work.

I understand Dongs concerns as a parent. When new college graduates want to be their own bosses by opening online shops， providing them with some initial funding is not the biggest problem for many parents. What they worry about is their childrens unrealistic dream of business success and their unwillingness to work hard or subject themselves to discipline.

If a majority of those born in the 1990s choose to open online shops， manufacturing industries could face worker shortages. This will pose a hidden risk to the nations overall economy and society at large.

Young people will probably find many problems in the goods they sell online， and maybe those who cannot tolerate low-quality commodities will turn to the manufacturing sector to produce better goods. The virtual economy itself is not bad， but too many young people involving themselves in it is a negative thing. Only the real economy provides the core strength that ultimately ensures a nations development.

CON

Tan Haojun Comments in China Youth Daily

To see online shops operated by young people as a hidden risk that will damage the real economy is a radical idea. The real economy is undoubtedly important， but other forms of the economy also matter.

Young people who operate online shops do not necessarily object to the real economy. More importantly， you cannot say for certain that they are satisfied with 2，000 yuan （$300） or so per month. The threshold for online shops is low， so they are favored by the young people as a means of getting started in business. In this way， young entrepreneurs can interact with all kinds of people and accumulate business experience.

With more and more young people choosing to open online shops， employment pressure on the real economy is somewhat declining. Some of them also continue hunting for jobs in traditional companies while operating their online business. Compared with unemployed young people not seeking to support themselves and either idling away their time or making trouble， this benefits overall social stability.

Online shops actually shore up the real economy by supporting commodity circulation. Nowadays， many large companies also choose to cooperate with online retailers to promote sales. Rejecting online shops shows ones incapability of adapting to new trends. As a senior corporate manager， Dong is supposed to show tolerance to young online shop owners.

PRO

Chi Qiang Netizen

If most young people refuse to join the real economy， it really is a “hidden risk.” A city cannot get prosperous without busy shopping malls and streets. The government can also provide better services with growing tax revenues from booming businesses. However， in the era of ecommerce， rising rent and labor forces make it extremely difficult for offline stores to survive. It was reported that many famous department stores closed operation in some cities due to the squeeze of e-commerce.

One risk of shopping online is to get products of inferior quality as products can only be judged from pictures shown in online shops and other buyers comments， which sometimes are false. The anonymity of selling commodities online is actually indulging makers of these fake goods， eventually leading to jeopardize Chinas efforts in promoting the “made-in-China”image and upgrading manufacturing.

CON

Jiang Debin Comments in New Express Daily

In a market economy， every person has the freedom to choose whatever job he or she is capable of doing. Young people choose to open online shops either because they want to start their own business or because they just want to live life without being restricted by all kinds of corporate discipline. Some may dislike young people operating online shops， but they have the right to do so. Their choice should be respected.

Chinas economy faces the problem of overcapacity in many industrial sectors. In the process of eliminating outdated industrial capacity， many workers are being laid off. Besides， some areas of economic activity have begun to replace human workers with mechanized robots.

Young people born in the 1990s have grown up in a time of plentiful resources， and most of them have developed a strong personality. They are full of ideas and are passionate to gain employment in which they can fully display their personal character and capabilities. Comparatively， they are not so concerned about income. Many factors have pushed young people to open online shops， and on the whole， this is a positive trend. The Internet economy is not in conflict with the real economy. The products sold by online shops are produced by real factories. These shops are just a channel for consumers to buy commodities. Actually， online shops make it more convenient for manufacturers to sell goods. There are no intrinsic differences between e-commerce and traditional physical stores. They are just two different commercial models.

PRO

Zong Qinghou President of Wahaha Group

The real economy， especially the manufacturing sector， is the bedrock of a countrys economic prosperity. As part of the virtual economy， the Internet businesses should serve the real economy. If the virtual economy squeezes the real economy so badly that bubbles of virtual businesses eventually burst， the overall economy will be in danger.

Online shops have greatly impacted real economy. With e-commerce evaluating goods based on web traffic， a feeding frenzy has broken out in buying data to mislead people in believing they have good traffic figures. The price system of the real economy is therefore messed up by them. Besides， rampant online counterfeits jeopardize the integrity of manufacturers in the real economy.

My business will not go online. If everybody were preoccupied with the virtual economy， how would our society develop？ It is the real economy that creates wealth. The real economy is also the base for the development of the virtual economy. Without it， online businesses are just empty talk.