Just out of curiosity, why are so many shops and restaurants (Papa John's, Cacaja...) currently closing down in Zhengyi mall? Rent raise, unpaid bills, crackdown?

I hardly go to those places. I think they are overpriced. One thing that I noticed about Kunming is that when a business becomes successful. The landlord tries or succeed to raise the rent. Contracts are a joke in China.

Great establishments of considerable cultural significance have crashed for this reason - e.g., The Box, 2003-Sep. 14, 2012, RIP.
Small business owner/managers can have heart; landlords never do.

commercial rent here are unstustainable. i was asked more than shanghai rents for a place in a res area about 10km outside kunming downtown. i just laughted and pointed out all of the empty broken businesses in units on the street. also some places are just not in the right location location location. i see loads of places that cannot be covering the rent, but as they probably paid 1 yesr rent upfront they might as well stay open.

I thought that if the landlord tried to raise rent in breach of contract, one could "just refuse" to pay the higher rent (or move out, etc) - or in the spirit of breaching contracts - since I'm a culturally sensitive kind of guy, unilaterally negotiate a LOWER rent.

Negotiations should be fair and equitable, right?

i agree with all you guys, its stupid. because right now business aint the same as it was before.

i know someone who rent a place for 600,000 a year there. im like imagine if the store sells like eye glasses or food or whatever how much he needs to sell to make the rent.

so you question things why the prices on the stores is way too much

all i know the landlords of those mall owners would rather have their places without tenants than having rent still just by lowering it a bit .

It's best to buy the property if you can. For example if you open an English training school, buy a Condo and open up the school. If the school is successful you don't have to worry about the 'landlord' raising the rent. Maybe there should be a co-op where foreigners buy property together and open up businesses together.

@liumingke: interesting idea, not sure what I think; it might increase the ghetto mentality.

These are things that I have observed from being here awhile:
The Chinese mentality is "let's rip these people off, there is plenty more (1.3 billion) where that one came from."
They don't understand that when you treat customers right and give them great service, they have to come back. They must come back. The 'feeling' of being given great service is addicting. In fact it's such a good feeling that you just can contain yourself and have to tell everyone you know. That equals more and more customers. That my friend is what is wrong with China.

If they can't steal it they'll rip you off. Either way you're screwed. Ha.Ha.