Covid controls and financial worries take sheen off China’s golden week for millions

Strict lockdowns in some parts of the country and growing economic uncertainty are likely to dampen tourism and spending during the National Day holiday

Recent crackdowns on the property market and private tutoring could prompt many consumers to tighten their belts

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Shoppers in Beijing’s Sanlitun district. Covid controls and economic uncertainly are likely to dampen spending during the upcoming holiday. Photo: EPA-EFE

Published: 11:00am, 25 Sep 2021Updated: 3:26pm, 25 Sep 2021

Zhang Jianwei, 35, a home decorator in Beijing, led a frugal life during the Mid-Autumn Festival, eating simple food such as noodles, dumplings and visiting free-to-enter local parks.

He plans to continue the belt-tightening during the week-long National Day Holiday, which starts on October 1. Unlike previous years, he plans to remain in the capital and will not be travelling to his hometown in Henan province during “golden week”.

“I avoid long-distance travel,” Zhang said. “By doing so, I can reduce the possibility of getting infected with coronavirus, save money and save time. Travel less, spend less. I’ll look for odd jobs during the holiday to offset the fall in my income.”

Private consumption in China has been dampened amid the Covid-19 pandemic and crackdowns that have affected a range of industries ranging from education and property to internet technology.

Mobility curbs under China’s stringent coronavirus control measures and gloomy employment prospects are also likely to prompt more consumers to tighten the purse strings.

Retail sales growth, a key measure of consumer spending in the world’s most populous nation, weakened to 1.5 per cent last month from 3.6 per cent in July as strict quarantine and lockdown measures were introduced to tackle Delta variant clusters in August, restricting mobility and battering the services industry.