China’s consumption drive falls on deaf ears as consumers remain cautious, ask for more
- Beijing is banking on the services sector to offset subdued external demand as it seeks a solution to China’s weak consumption dilemma
An elusive solution to China’s weak consumption has been weighing on policymakers as Beijing banks on increased spending for future economic growth amid subdued external demand.
Despite a raft of policies and pledges, Chinese consumers, haunted by cloudy economic prospects and reduced income, remain reluctant to spend unless there are obvious benefits.
However, consumers who are growing increasingly cautious about spending their hard-earned money, remain unimpressed.
Only when I am making more money would I be willing to spend more
“No measure is good unless it gives me money,” half-jokingly said Beijing-based paralegal Guo Yijia.
Guo had considered the home appliances trade-in programme, but it does not seem to be a great deal, with her old washing machine only worth a small amount on online retailer JD, and her air conditioner installer offering a larger discount.