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October 17, 2025

Merchants strike against Wuzhou

In recent days, merchants at the Guangzhou Wuzhou Chong International Building Materials Center have been raising concerns over a sharp increase in rent and additional fees, leading to four consecutive days of collective protests. The situation has sparked widespread dissatisfaction among shopkeepers, who feel the pressure from soaring costs. According to the head of Wuzhou Group, the recent rent hike is based on current market conditions. More than 700 merchants in the "Wuzhou Decoration Materials City" in Panyu District recently staged a walkout, protesting what they see as an unreasonable rise in rental prices. They held banners and marched daily, with police present to maintain order. On July 15, a group of merchants even went to the Panyu District People's Government Letters and Calls Office to voice their complaints, seeking intervention from local authorities. It is reported that there are over 700 stores in the area, and by August this year, most of the leases are due to expire. If merchants wish to renew their contracts, they must pay significantly higher rents, along with upgrade and reconstruction fees ranging from 10,000 to 70,000 yuan. Additionally, if a merchant wishes to transfer the shop, they are required to pay a 30,000 yuan transfer service fee, even with management approval. Many merchants find the new charges unbearable. One long-time vendor, Mr. Cao, who has operated a hardware store in the area since 2000, shared his concerns. He revealed that the monthly rent for his 64-square-meter store increased from over 8,000 yuan in 2011 to 24,305 yuan in July 2014—nearly doubling. He also mentioned that management fees have risen sharply over the years, from 320 yuan per month in 2011 to over 900 yuan in 2014. Despite the protests, the market seems to have returned to normal, with most shops operating as usual. However, many merchants declined to speak further, citing previous media interviews and a desire to avoid further attention. The Wuzhou Group claims that the rent increases are aligned with market rates and that the fees are determined based on location and property value. They denied any claim of doubling rent and emphasized that the management fee for a 60-square-meter store is around 400 yuan, which they consider reasonable. The company also highlighted that they invested 500 million yuan into upgrading the materials center, with merchants only contributing a small portion of the renovation costs. Regarding the transfer fee, they explained it as a contractual requirement to manage frequent transfers in the market. Both sides are now engaged in negotiations, hoping to reach a mutual agreement. Merchants expressed that they are not seeking confrontation but rather a fair adjustment in rent. Mr. Cao said he hopes the talks will lead to a more satisfactory outcome. A representative from Wuzhou Group admitted that the protests had a significant impact on both parties and that multiple rounds of discussions have already taken place, though details remain confidential until a final decision is made.

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