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What China’s ‘consumption downgrade’ means

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JUST after the second half of the year, economists and financial analysts noted Chinese consumers were scaling back on discretionary spending en masse, triggering a debate about the so-called ‘consumption downgrade’ of the middle class amid the US’ trade war with Beijing.

In China’s bustling major cities, many urban-dwellers are reportedly finding ways to trim spending, scaling back on a myriad of small luxuries and creature comforts that include everything from taxi rides to romantic dinners, to designer handbags.

According to global market intelligence company CEIC in September, China’s economic growth for the third quarter was at 6.5 percent, the slowest seen in a decade where consumer spending has slumped in the latest reading.

SEE ALSO: Despite border tension, Indian consumers prefer Chinese goods

The underperforming growth rate was softened by the encouraging 9.3 percent growth in retail sales for the first three quarters of 2018, but still, a dispiriting figure compared to last year’s growth of 10.4 percent last year, according to Nikkei Asian Review.

While the........

© Asian Correspondent