
The Chinese government has promised new child care subsidies, increased wages and better paid leave to revive a slowing economy. That is on top of a $41bn discount programme for all sorts of things, from dishwashers and home decor to electric vehicles and smartwatches.
Beijing is going on a spending spree that will encourage Chinese people to crack open their wallets.
Simply put, they are not spending enough.
Monday brought some positive news. Official data said retail sales grew 4% in the first two months of 2025, a positive sign for consumption data. But, with a few exceptions like Shanghai aside, new and existing home prices continued to decline compared to last year.
While the US and other major powers have struggled with post-Covid inflation, China is experiencing the opposite: deflation – when the rate of inflation falls below zero, meaning that prices decrease. In China, prices fell for 18 months in a row in the past two years.
Prices dropping might sound like good news for consumers. But a persistent decline in consumption – a measure of what households buy – signals deeper economic trouble. When people stop spending, businesses cut prices to attract buyers. The more this happens, the less money they make, hiring slows, wages stagnate and economic momentum grinds to a halt.
That is a cycle China wants to avoid, given it’s already battling sluggish growth in the wake of a prolonged crisis in the property market, steep government debt and unemployment.
The cause of low consumption is straightforward: Chinese consumers either don’t have enough money or don’t feel confident enough about their future to spend it.
But their reluctance comes at a critical moment. With the economy aiming to grow at 5% this year, boosting consumption is a top priority for President Xi Jinping. He is hoping that rising domestic consumption will absorb the blow US tariffs will inflict on Chinese exports.
So, will Beijing’s plan work?
China is getting serious about spending
To tackle its ailing economy and weak domestic demand, Beijing wrapped up its annual National People’s Congress last week with increased investment in social welfare programmes as part of its grand economic plan for 2025.
Then came this week’s announcement with bigger promises, such as employment support plans, but scant details.
Some say it is a welcome move, with the caveat that China’s leaders need to do more to step up support. Still, it signals Beijing’s awareness of the changes needed for a stronger Chinese consumer market – higher wages, a stronger social safety net and policies that make people feel secure enough to spend rather than save.

A quarter of China’s labour force is made up of low-paid migrant workers, who lack full access to urban social benefits. This makes them particularly vulnerable during periods of economic uncertainty, such as the Covid-19 pandemic.
Rising wages during the 2010s masked some of these problems, with average incomes growing by around 10% annually. But as wage growth slowed in the 2020s, savings once again became a lifeline.
The Chinese government, however, has been slow to expand social benefits, focusing instead on boosting consumption through short-term measures, such as trade-in programmes for household appliances and electronics. But that has not addressed a root problem, says Gerard DiPippo, a senior researcher at the Rand think tank: “Household incomes are lower, and savings are higher”.
The near-collapse of the property market has also made Chinese consumers more risk-averse, leading them to cut back on spending.
“The property market matters not only for real economic activity but also for household sentiment, since Chinese households have invested so much of their wealth in their homes,” Mr DiPippo says. “I don’t think China’s consumption will fully recover until it’s clear that the property sector has bottomed out and therefore many households’ primary assets are starting to recover.”
Some analysts are encouraged by Beijing’s seriousness in targeting longer-term challenges like falling birth rates as more young couples opt out of the costs of parenthood.
A 2024 study by Chinese think tank YuWa estimated that raising a child to adulthood in China costs 6.8 times the country’s GDP per capita – among the highest in the world, compared to the US (4.1), Japan (4.3) and Germany (3.6).
These financial pressures have only reinforced a deeply ingrained saving culture. Even in a struggling economy, Chinese households managed to save 32% of their disposable income in 2024.
That’s not too surprising in China, where consumption has never been particularly high. To put this in perspective, domestic consumption drives more than 80% of growth in the US and UK, and about 70% in India. China’s share has typically ranged between 50% to 55% over the past decade.
But this wasn’t really a problem – until now.
When shopping fell and savings rose
There was a time when Chinese shoppers joked about the irresistible allure of e-commerce deals, calling themselves “hand-choppers” – only chopping off their hands could stop them from hitting the checkout button.
As rising incomes fuelled their spending power, 11 November in China, or Double 11, came to be crowned as the world’s busiest shopping day. Explosive sales pulled in over 410 billion yuan ($57bn; £44bn) in just 24 hours in 2019.
But the last one “was a dud,” a Beijing-based coffee bean online seller told the BBC. “If anything, it caused more trouble than it was worth.”
Chinese consumers have grown frugal since the pandemic, and this caution has persisted even after restrictions were lifted in late 2022.
That’s the year Alibaba and JD.com stopped publishing their sales figures, a significant shift for companies that once headlined their record-breaking revenues. A source familiar with the matter told the BBC that Chinese authorities cautioned platforms against releasing numbers, fearing that underwhelming results could further dent consumer confidence.
The spending crunch has even hit high-end brands – last year, LVMH, Burberry and Richemont all reported sales declines in China, once a backbone of the global luxury market.
On RedNote, a Chinese social media app, posts tagged with “consumption downgrade” have racked up more than a billion views in recent months. Users are swapping tips on how to replace expensive purchases with budget-friendly alternatives. “Tiger Balm is the new coffee,” said one user, while another quipped, “I apply perfume between my nose and lips now – saving it just for myself.”

Even at its peak, China’s consumer boom was never a match for its exports. Trade was also the focus of generous state-backed investment in highways, ports and special economic zones. China relied on low-wage workers and high household savings, which fuelled growth but left consumers with limited disposable income.
But now, as geopolitical uncertainties grow, countries are diversifying supply chains away from China, reducing reliance on Chinese exports. Local governments are burdened by debt, after years of borrowing heavily to invest, particularly in infrastructure.
Xi Jinping has already vowed “to make domestic demand the main driving force and stabilising anchor of growth”. Caiyun Wang, a National People’s Congress representative, said, “With a population of 1.4 billion, even a 1% rise in demand creates a market of 14 million people.”

But there’s a catch in Beijing’s plan.
For consumption to drive growth, many analysts say, the Chinese Communist Party would have to restore the consumer confidence of a generation of Covid graduates that is struggling to own a home or find a job. It would also require triggering a cultural shift, from saving to spending.
“China’s extraordinarily low consumption level is not an accident,” according to Michael Pettis, a senior fellow at the Carnegie Endowment for International Peace. “It is fundamental to the country’s economic growth model, around which three-four decades of political, financial, legal and business institutions in China have evolved. Changing this won’t be easy.”
The more households spend, the less there is in the pool of savings that China’s state-controlled banks rely on to fund key industries – currently that includes AI and innovative tech that would give Beijing an edge over Washington, both economically and strategically.
That is why some analysts doubt that China’s leaders want to create a consumer-driven economy.
“One way to think about this is that Beijing’s primary goal is not to enhance the welfare of Chinese households, but rather the welfare of the Chinese nation,” David Lubin, a research fellow at Chatham House wrote.
Shifting power from the state to the individual may not be what Beijing wants.
China’s leaders did do that in the past, when they began trading with the world, encouraging businesses and inviting foreign investment. And it transformed their economy. But the question is whether Xi Jinping wants to do that again.
ADVERTISEMENT:
Halo, sobat pencinta slot! pernahkah denger semboyan “slot demo”? Kalau belum, siap-siap jatuh cinta sama konsep ini. raja slot adalah mesin slots yang selalu kasih win. Ya, mesin-mesin ini bisa dikatakan adalah jagoannya tuk bawa pulang hasil. tapi, gimana sih
tekniknya jumpain raja lot yang tepat? Tenang Bro and Sis, kita bahas santai saja di sini
Gaming terpercaya saat ini satu-satunya berada Indonesia hanya di akan menyediakan return terbaik
Daftar dengan di :
Informasi mengenai KING SLOT, Segera Daftar Bersama king selot terbaik dan terpercaya no satu di Indonesia. Boleh mendaftar melalui sini king slot serta memberikan hasil kembali yang paling tinggi saat sekarang ini hanyalah KING SLOT atau Raja slot paling gacor, gilak dan gaco saat sekarang di Indonesia melalui program return tinggi di kingselot serta pg king slot
slot demo gacor
slot demo gacor permainan paling top dan garansi imbal balik hasil besar bersama kdwapp.com
akun demo slot gacor
akun demo slot gacor permainan paling top dan garansi imbal balik hasil besar bersama kdwapp.com
akun slot demo gacor
akun slot demo gacor permainan paling top dan garansi imbal balik hasil besar bersama kdwapp.com
akun demo slot pragmatic
akun demo slot pragmatic permainan paling top dan garansi imbal balik hasil besar bersama kdwapp.com
akun slot demo pragmatic
akun slot demo pragmatic permainan paling top dan garansi imbal balik hasil besar bersama kdwapp.com
akun slot demo
akun slot demo permainan paling top dan garansi imbal balik hasil besar bersama kdwapp.com
akun demo slot
akun demo slot permainan paling top dan garansi imbal balik hasil besar bersama kdwapp.com
slot demo gacor
slot demo gacor permainan paling top dan garansi imbal balik hasil besar bersama jebswagstore.com
akun demo slot gacor
akun demo slot gacor permainan paling top dan garansi imbal balik hasil besar bersama jebswagstore.com
akun slot demo gacor
akun slot demo gacor permainan paling top dan garansi imbal balik hasil besar bersama jebswagstore.com
akun demo slot pragmatic
akun demo slot pragmatic permainan paling top dan garansi imbal balik hasil besar bersama jebswagstore.com
akun slot demo pragmatic
akun slot demo pragmatic permainan paling top dan garansi imbal balik hasil besar bersama jebswagstore.com
akun slot demo
akun slot demo permainan paling top dan garansi imbal balik hasil besar bersama jebswagstore.com
akun demo slot
akun demo slot permainan paling top dan garansi imbal balik hasil besar bersama jebswagstore.com
slot demo gacor
slot demo gacor permainan paling top dan garansi imbal balik hasil besar bersama demoslotgacor.pro
akun demo slot gacor
akun demo slot gacor permainan paling top dan garansi imbal balik hasil besar bersama demoslotgacor.pro
akun slot demo gacor
akun slot demo gacor permainan paling top dan garansi imbal balik hasil besar bersama demoslotgacor.pro
akun demo slot pragmatic
akun demo slot pragmatic permainan paling top dan garansi imbal balik hasil besar bersama demoslotgacor.pro
akun slot demo pragmatic
akun slot demo pragmatic permainan paling top dan garansi imbal balik hasil besar bersama demoslotgacor.pro
akun slot demo
akun slot demo permainan paling top dan garansi imbal balik hasil besar bersama demoslotgacor.pro
akun demo slot
akun demo slot permainan paling top dan garansi imbal balik hasil besar bersama demoslotgacor.pro
slot demo gacor
slot demo gacor permainan paling top dan garansi imbal balik hasil besar bersama situsslotterbaru.net
akun demo slot gacor
akun demo slot gacor permainan paling top dan garansi imbal balik hasil besar bersama situsslotterbaru.net
akun slot demo gacor
akun slot demo gacor permainan paling top dan garansi imbal balik hasil besar bersama situsslotterbaru.net
akun demo slot pragmatic
akun demo slot pragmatic permainan paling top dan garansi imbal balik hasil besar bersama situsslotterbaru.net
akun slot demo pragmatic
akun slot demo pragmatic permainan paling top dan garansi imbal balik hasil besar bersama situsslotterbaru.net
akun slot demo
akun slot demo permainan paling top dan garansi imbal balik hasil besar bersama situsslotterbaru.net
akun demo slot
akun demo slot permainan paling top dan garansi imbal balik hasil besar bersama situsslotterbaru.net
situs slot terbaru
situs slot terbaru permainan paling top dan garansi imbal balik hasil besar bersama situsslotterbaru.net
slot terbaru
slot terbaru permainan paling top dan garansi imbal balik hasil besar bersama situsslotterbaru.net
adipatislot88 permainan paling top dan garansi imbal balik hasil besar bersama adipatislot88.org
akartoto88 permainan paling top dan garansi imbal balik hasil besar bersama akartoto88.biz
allototo88 permainan paling top dan garansi imbal balik hasil besar bersama allototo88.com
alototo88 permainan paling top dan garansi imbal balik hasil besar bersama alototo88.com
an77 permainan paling top dan garansi imbal balik hasil besar bersama an77.biz
an88 permainan paling top dan garansi imbal balik hasil besar bersama an88.net
grandhyatt88 permainan paling top dan garansi imbal balik hasil besar bersama grandhyatt88.com
awan88 permainan paling top dan garansi imbal balik hasil besar bersama awan88.org
banteng88 permainan paling top dan garansi imbal balik hasil besar bersama banteng88.biz
banteng96 permainan paling top dan garansi imbal balik hasil besar bersama banteng96.com
bibir66 permainan paling top dan garansi imbal balik hasil besar bersama bibir66.com
bibir88 permainan paling top dan garansi imbal balik hasil besar bersama bibir88.biz
bocor888 permainan paling top dan garansi imbal balik hasil besar bersama bocor888.biz
boswin888 permainan paling top dan garansi imbal balik hasil besar bersama boswin888.asia
canda88 permainan paling top dan garansi imbal balik hasil besar bersama canda88.org
candatoto permainan paling top dan garansi imbal balik hasil besar bersama candatoto.net
cinta888 permainan paling top dan garansi imbal balik hasil besar bersama cinta888.biz
dalang88 permainan paling top dan garansi imbal balik hasil besar bersama dalang88.info
dalang96 permainan paling top dan garansi imbal balik hasil besar bersama dalang96.org
dinojp88 permainan paling top dan garansi imbal balik hasil besar bersama dinojp88.com
dragon22 permainan paling top dan garansi imbal balik hasil besar bersama dragon22.asia
eyangslot88 permainan paling top dan garansi imbal balik hasil besar bersama eyangslot88.biz
f77bet permainan paling top dan garansi imbal balik hasil besar bersama f77bet.net
f88bet permainan paling top dan garansi imbal balik hasil besar bersama f88bet.asia
haha88 permainan paling top dan garansi imbal balik hasil besar bersama haha88.asia
heroslot888 permainan paling top dan garansi imbal balik hasil besar bersama heroslot888.info
hiwin88 permainan paling top dan garansi imbal balik hasil besar bersama hiwin88.org
hoki222 permainan paling top dan garansi imbal balik hasil besar bersama hoki222.biz
hot99 permainan paling top dan garansi imbal balik hasil besar bersama hot99.info
hotliga88 permainan paling top dan garansi imbal balik hasil besar bersama hotliga88.com
hut88 permainan paling top dan garansi imbal balik hasil besar bersama hut88.info
inajp88 permainan paling top dan garansi imbal balik hasil besar bersama inajp88.net
istanaslot88 permainan paling top dan garansi imbal balik hasil besar bersama istanaslot88.biz
jawatogel88 permainan paling top dan garansi imbal balik hasil besar bersama jawatogel88.com
jayatogel88 permainan paling top dan garansi imbal balik hasil besar bersama jayatogel88.info
jengkol88 permainan paling top dan garansi imbal balik hasil besar bersama jengkol88.info
jeniustoto88 permainan paling top dan garansi imbal balik hasil besar bersama jeniustoto88.org
kakakslot888 permainan paling top dan garansi imbal balik hasil besar bersama kakakslot888.net
kakaslot88 permainan paling top dan garansi imbal balik hasil besar bersama kakaslot88.biz
keltoto88 permainan paling top dan garansi imbal balik hasil besar bersama keltoto88.com
kera33 permainan paling top dan garansi imbal balik hasil besar bersama kera33.com
kera88 permainan paling top dan garansi imbal balik hasil besar bersama kera88.biz
keraktelor permainan paling top dan garansi imbal balik hasil besar bersama keraktelor.org
kuliner88 permainan paling top dan garansi imbal balik hasil besar bersama kuliner88.org
lengkatoto88 permainan paling top dan garansi imbal balik hasil besar bersama lengkatoto88.com
lexitoto88 permainan paling top dan garansi imbal balik hasil besar bersama lexitoto88.net
mahkotajitu88 permainan paling top dan garansi imbal balik hasil besar bersama mahkotajitu88.com
maincuan88 permainan paling top dan garansi imbal balik hasil besar bersama maincuan88.com
menangbet88 permainan paling top dan garansi imbal balik hasil besar bersama menangbet88.asia
menutogel88 permainan paling top dan garansi imbal balik hasil besar bersama menutogel88.com
merdeka88 permainan paling top dan garansi imbal balik hasil besar bersama merdeka88.biz
merdekatoto88 permainan paling top dan garansi imbal balik hasil besar bersama merdekatoto88.info
metrototo permainan paling top dan garansi imbal balik hasil besar bersama metrototo.biz
miegacoan permainan paling top dan garansi imbal balik hasil besar bersama miegacoan.biz
ml88 permainan paling top dan garansi imbal balik hasil besar bersama ml88.net
monas777 permainan paling top dan garansi imbal balik hasil besar bersama monas777.info
monas88 permainan paling top dan garansi imbal balik hasil besar bersama monas88.biz
moris88 permainan paling top dan garansi imbal balik hasil besar bersama moris88.org
nastartoto88 permainan paling top dan garansi imbal balik hasil besar bersama nastartoto88.com
newslot888 permainan paling top dan garansi imbal balik hasil besar bersama newslot888.biz
ngopibet88 permainan paling top dan garansi imbal balik hasil besar bersama ngopibet88.org
omset88 permainan paling top dan garansi imbal balik hasil besar bersama omset88.com
pajaktoto88 permainan paling top dan garansi imbal balik hasil besar bersama pajaktoto88.biz
pc77 permainan paling top dan garansi imbal balik hasil besar bersama pc77.net
pc88 permainan paling top dan garansi imbal balik hasil besar bersama pc88.biz
pin88 permainan paling top dan garansi imbal balik hasil besar bersama pin88.asia
pintoto permainan paling top dan garansi imbal balik hasil besar bersama pintoto.info
pmg888 permainan paling top dan garansi imbal balik hasil besar bersama pmg888.biz
pohon88 permainan paling top dan garansi imbal balik hasil besar bersama pohon88.biz
pulsa77 permainan paling top dan garansi imbal balik hasil besar bersama pulsa77.biz
pulsa88 permainan paling top dan garansi imbal balik hasil besar bersama pulsa88.biz
puma888 permainan paling top dan garansi imbal balik hasil besar bersama puma888.info
pusakajitu88 permainan paling top dan garansi imbal balik hasil besar bersama pusakajitu88.com
qqhok88 permainan paling top dan garansi imbal balik hasil besar bersama qqhok88.org
rapi88 permainan paling top dan garansi imbal balik hasil besar bersama rapi88.info
rt88 permainan paling top dan garansi imbal balik hasil besar bersama rt88.info
rupiahtoto88 permainan paling top dan garansi imbal balik hasil besar bersama rupiahtoto88.asia
s88bet permainan paling top dan garansi imbal balik hasil besar bersama s88bet.org
serba88 permainan paling top dan garansi imbal balik hasil besar bersama serba88.biz
sibukslot88 permainan paling top dan garansi imbal balik hasil besar bersama sibukslot88.com
sinardunia888 permainan paling top dan garansi imbal balik hasil besar bersama sinardunia888.com
sinartogel88 permainan paling top dan garansi imbal balik hasil besar bersama sinartogel88.biz
sloki888 permainan paling top dan garansi imbal balik hasil besar bersama sloki888.info
slotplay88 permainan paling top dan garansi imbal balik hasil besar bersama slotplay88.biz
sp77 permainan paling top dan garansi imbal balik hasil besar bersama sp77.biz
sp88 permainan paling top dan garansi imbal balik hasil besar bersama sp88.org
sparta888 permainan paling top dan garansi imbal balik hasil besar bersama sparta888.co
sukaslot888 permainan paling top dan garansi imbal balik hasil besar bersama sukaslot888.info
sule999 permainan paling top dan garansi imbal balik hasil besar bersama sule999.net
sultanjp88 permainan paling top dan garansi imbal balik hasil besar bersama sultanjp88.com
teluk88 permainan paling top dan garansi imbal balik hasil besar bersama teluk88.biz
teluk88 permainan paling top dan garansi imbal balik hasil besar bersama teluk88.info
tikitoto88 permainan paling top dan garansi imbal balik hasil besar bersama tikitoto88.org
togelsumo88 permainan paling top dan garansi imbal balik hasil besar bersama togelsumo88.com
ultra77 permainan paling top dan garansi imbal balik hasil besar bersama ultra77.biz
userslot88 permainan paling top dan garansi imbal balik hasil besar bersama userslot88.biz
uya88 permainan paling top dan garansi imbal balik hasil besar bersama uya88.biz
uyatoto permainan paling top dan garansi imbal balik hasil besar bersama uyatoto.com
vegasslot777 permainan paling top dan garansi imbal balik hasil besar bersama vegasslot777.asia
vegasslot88 permainan paling top dan garansi imbal balik hasil besar bersama vegasslot88.asia
wajik88 permainan paling top dan garansi imbal balik hasil besar bersama wajik88.asia