An internet cafe in Jiuxianqiao, Chaoyang District, Beijing. Despite its upscale facilities, it is facing the threat of closure amid a sharp decline in customers. / Economic Daily

China’s internet cafe industry, once regarded as a cash cow, is now facing a dramatic decline. Given the current trend, a return to its former glory appears increasingly unlikely.

Recent reports from the Economic Daily and other Chinese media show that around the turn of the century, internet cafes were among the hottest gathering places for young people in China and became emblematic of youth culture. They were even described as “liberated zones for young people.”

The industry naturally enjoyed explosive growth. Some internet cafe chains even managed to break into the ranks of China’s 100 largest companies, underscoring just how lucrative the business had become.

Those glory days, however, now appear to be firmly in the past. The stark changes in industry statistics illustrate just how dramatic the decline has been.

According to Chinese authorities overseeing the digital sector, there were only about 40,000 internet cafes nationwide in 2000. Their number then surged, approaching 150,000 around 2010, with some even expecting the figure to eventually exceed 200,000.

The boom was hardly surprising. Personal computers were expensive at the time, and laptops were even less affordable. Buying one was far beyond the reach of many young Chinese, particularly given the much lower level of economic development in China compared with today. Internet cafes therefore sprang up across the country.

The situation began to change rapidly around 2010 as China’s economy expanded sharply and computer prices became more affordable. The spread of smartphones accelerated the shift, giving young people even less reason to visit internet cafes.

The number of cafes subsequently began to fall rapidly. By the end of 2025, the nationwide total was estimated to have dropped below 100,000.

The bigger concern for the industry is that the decline may be far from over. Industry analysts expect around 10,000 internet cafes to disappear each year.

Qin Yingcan, who operates a large 200-square-meter internet cafe in Jiuxianqiao, Chaoyang District, Beijing, said he no longer sees much of a future in the business.

“The good old days don’t seem likely to return,” Qin said. “I plan to close the store soon and start a new business.”

Some operators are reportedly trying to revive the industry by upgrading their facilities and moving further upmarket. But reversing the broader downward trend is expected to be difficult.

For those in China’s internet cafe industry, lamenting the loss of the “good old days” may now be less a choice than an inevitable acceptance of reality.

                                                                                                             Hong Soon-do