US EditionCommentary: The Myth of the Suppressed Chinese Consumer
- Despite efforts to stimulate the economy in 2025, consumer expenditure in China is expected to remain weak in the near future.
- Stagnant income growth since the 2020 pandemic, with disposable income rising only about 5% annually, constrains consumer demand.
- Consumers increasingly prefer lower-priced products and shift away from big cities to lower-cost areas, while high youth unemployment also weighs on spending.
- A March survey showed 61.4% of Chinese households preferred saving over spending, with the top 20% holding half of income and 60% of savings.
- Analysts say structural reforms like pension increases and wage adjustments are needed since short-term subsidies have limited effect on reviving consumption.
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13 Articles
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Why aren’t Chinese consumers spending enough money? - Los Angeles Weekly Times
Customers look at clothes advertising discounts of 80% or 70% in a supermarket in Hangzhou, Zhejiang province, China, on June 9, 2025. Cfoto | Future Publishing | Getty Images BEIJING — China’s consumer spending shows little sign of picking up soon, given uncertainty about future wealth, changing preferences and lack of a social safety net. It’s been four straight months of declining consumer prices, consumer confidence is hovering near histori…
Coverage Details
Total News Sources13
Leaning Left3Leaning Right0Center5Last UpdatedBias Distribution63% Center
Bias Distribution
- 63% of the sources are Center
63% Center
L 38%
C 63%
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