China’s consumers are finally starting to spend again. But will it last?
A barrage of stimulus policies has helped lift consumer sentiment in China, but the recovery is still tentative – and could be dented by a US trade war
China has launched a series of policies aimed at boosting domestic consumption in recent months as officials look to shore up the economy amid an intensifying trade war with the United States. This miniseries examines whether those efforts are paying off, with the first story offering an overview of consumer sentiment in China this year.
Linda Wang, a 45-year-old corporate manager in Shanghai, had to take drastic measures to curtail her spending last year, effectively banning herself from shopping for any non-essential items for months.
Her self-imposed austerity drive was fuelled by anxiety about the state of the economy, as news of rampant lay-offs and salary cuts spread across China.
“At that time, I was so worried that I might not be able to get paid on time, and expected my year-end bonus would be slashed by 50 per cent compared with previous years,” she recalled.
But things have since started to look up. Wang did receive her pay cheques on time in the end, and she even got a larger-than-expected bonus – down only 15 per cent compared with prior years.
Even better, she has made an on-paper gain of 10,000 yuan (US$1,380) on her 50,000-yuan stock portfolio so far this year, after suffering a 10,000-yuan on-paper loss last year.
To celebrate, Wang decided to loosen her purse strings a little. In January, she bought an iPhone 16 for about 6,000 yuan and an annual pass to the Shanghai Disney Resort.