From canteens to guesthouses: China unlocks idle state property
Across China, local government canteens, state guesthouses and more state-run facilities are opening up to the general public. Not only are these places well received by the people, the move also helps generate revenue for local governments and makes use of spaces that would otherwise be idle. Lianhe Zaobao journalist Meng Dandan finds out more.
Braised Yongding River carp, spicy crab, black pork buns… As soon as lunchtime rolls around, the staff canteen of the Chinese Coal Mine Art Troupe (CCMAT) in Beijing’s Chaoyang district becomes a trending restaurant. A plethora of home-style and specialty dishes — over 20 types of carefully prepared dishes and staples — fill the serving counters. In the queue are young staff with an actorly air, office workers, elderly residents from nearby neighbourhoods, and food bloggers “checking in”, some even setting up tripods to livestream.
Dining with a peace of mind
Following moves by local government canteens in Jiangsu’s Yangzhou, Guangdong’s Shunde and Anhui’s Huainan to open to the public on weekends and public holidays, several corporate and public-institution canteens in Beijing have also begun welcoming outside diners.
Amid intensifying competition in the catering sector, even institution-run canteens that once had no shortage of patrons are being drawn into the fray, with many proving popular after opening to the public.
A white-collar worker surnamed Liu, who works near the CCMAT, told Lianhe Zaobao that she eats at the canteen two to three times a week, spending about 30 RMB (around US$4.30) per meal, with a wide selection of dishes priced by weight. She thinks that while the food is not much cheaper than takeaways, “hygiene and food safety are assured, so you can eat with peace of mind”.
An increasing number of corporate and public-institution canteens like that of the CCMAT are opening to the public. Although still relatively rare in Beijing, the number of government staff canteens open to the public in other provinces and cities is growing.
... prices at institution-run canteens are low mainly because they do not bear costs such as rent or taxes, and their customer base is stable. — Mr Zhang, a staff canteen operator at a public institution
According to Chinese media reports, in addition to the three aforementioned provinces and cities, government canteens in places such as Harbin in Heilongjiang, Chibi in Hubei and Rongchang in Chongqing have also opened their doors to the public on weekends and public holidays. Many diners have remarked that government canteens win them over with a no-frills, unpretentious charm that trendy restaurants rarely match.
Idle no more
Opening staff canteens to the public helps dispel the “mystery” and stereotypes surrounding institution-run dining halls that meals are free or that ingredients are specially supplied, while giving ordinary people access to affordable food. It also helps ease operational pressures on restaurant operators.
Mr Zhang, who runs a staff canteen under contract at a public institution, told Lianhe Zaobao that prices at institution-run canteens are low mainly because they do not bear costs such as rent or taxes, and their customer base is stable. However, over the past two years, involution in the catering sector has intensified, and diner numbers dropped significantly, pushing up operational pressure.
He said that to maintain food quality without running at a loss, “the only option is to make better use of time and space.” He explained, “Apart from regular working hours, staff canteens are largely idle. Nearly a third of the time each month is wasted. By opening to the public on weekends and public holidays, the premises, equipment and workers can all be put to use.”
Not only are some institution-run canteens opening to the public, but state guesthouses, rehabilitation and wellness centres and state-run hotels — once seen as “guaranteed money-makers” — are also shedding their “special status” and becoming part of everyday life.
Funded by public resources and operated by government bodies or government-affiliated enterprises and institutions, these facilities were previously used mainly for official receptions and to serve specific groups.
Compared with high-end chain hotels that cost over 1,000 RMB a night but with increasingly underwhelming facilities and services, Li found many pleasant surprises during her stay at state guesthouses, at just a couple hundred RMB per night.
Most state-funded venues are typically located in city centres or near well-known tourist spots. With their elegant surroundings and good value, they are popular among young people and have even become trendy spots for social media check-ins.
Affordable charm
After staying at state guesthouses in Shandong’s Weihai and Shanghai this year, 28‑year‑old Li Wei, who works at an internet company, has become a fan. Compared with high-end chain hotels that cost over 1,000 RMB a night but with increasingly underwhelming facilities and services, Li found many pleasant surprises during her stay at state guesthouses, at just a couple hundred RMB per night.
She told Lianhe Zaobao, “The membership benefits of high‑end hotel chains are no longer enticing; you have to jostle for food in the lounge, and getting a room upgrade would take countless back and forths, which may come to no avail.”
“The beach is exceptionally clean, and the fitness facilities are surprisingly solid, with dedicated staff to accompany and guide you. The historied state guesthouse in Shanghai has excellent greenery and views...” — Li Wei, an internet company worker
By contrast, when she stayed at the state guesthouse in Weihai, “I could go directly from the guesthouse to the seaside to ganhai (赶海, beachcombing and low-tide coastal foraging for scallops, whelks and abalones). The beach is exceptionally clean, and the fitness facilities are surprisingly solid, with dedicated staff to accompany and guide you. The historied state guesthouse in Shanghai has excellent greenery and views, and although the rooms are not brand new, the hardware is well maintained and the hygiene is certainly up to par.”
On social media platform RedNote, posts sharing experiences of staying in state guesthouses, rehabilitation and wellness centres, and state-run hotels typically receive thousands or even tens of thousands of likes and comments. On Ctrip, state guesthouses and state-run hotels in various provinces, such as West Lake State Guest House in Hangzhou, East Lake Hotel in Wuhan and Yangzhou State Guesthouse, have become popular travel destinations.
Turning buildings into cash flow
Against the backdrop of the land-based financing slump and weak growth in local fiscal revenue, the Chinese government has in recent years issued multiple documents requiring localities to revitalise the use of state-owned assets, including state guesthouses, canteens and old factory buildings, in hopes of supplementing local non-tax revenues.
Since 2022, Chinese authorities have pushed to put idle state-owned assets to work — from old factories and hotels to staff canteens. Policies and the 15th Five-Year Plan encourage opening these spaces to communities and sharing existing infrastructure nationwide.
Public data show that by the end of 2024, the net value of state-owned administrative and institutional assets in China had reached 55.4 trillion RMB.
Academics interviewed have pointed out that opening official buildings and facilities to the public could help fill part of the gap left by land‑based financing.
Revitalising a single industrial park, canteen or guesthouse often has an impact on an entire area; local tax bases and consumption in the surrounding neighbourhoods would grow along with it. — Wang Chong, Director, China Public Finance Institute, SUFE
Wang Chong, director of the China Public Finance Institute at the Shanghai University of Finance and Economics (SUFE), described national industrial parks, government office buildings, guesthouses and old factories as “products from the bygone era of land-finance and government investment”. He said revitalising such assets could help offset declining land-related revenues and push local governments to shift from “competing on land prices” to “competing on operating assets and public services”.
“Once revitalised — whether as industrial parks, cultural hubs, affordable housing, staff canteens or guesthouses — these properties generate direct income such as rent, management fees and equity returns,” he explained. “Revitalising a single industrial park, canteen or guesthouse often has an impact on an entire area; local tax bases and consumption in the surrounding neighbourhoods would grow along with it. This spillover effect could help to fill the fiscal gaps of local governments.”
This article was first published in Lianhe Zaobao as “中国体制内食堂宾馆对外开放受追捧 学者：对冲部分土地财政缺口”.
