What’s The Matter With China’s Consumers?

Yes, Trump’s tariffs are hurting China’s economy, but a bigger damper on GDP growth is anemic consumer spending, William reports. China is experiencing deflation and exporting it to the rest of the world. President Xi has tried to revitalize the consumer sector with insufficient measures that don’t get at the root of the problem: Chinese consumers prefer to save than to spend because there’s no social safety net. Moreover, consumer confidence is weak owing to slow wage growth and the property crisis. What needs to be done is no secret: The IMF has outlined the ambitious but feasible reforms it would take to revive China’s consumer sector sustainably. But the recommendations have fallen on deaf presidential ears.