CHINESE ECONOMY RIDES THE CREST OF NEW CONSUMER PHENOMENA

Supported by improved income expectations, domestic demand records growth to bust myths

A talk about China's shift toward consumption-driven growth often begins with the myths that households, scarred by the COVID-19 pandemic, made precautionary savings, and that property market adjustments dented confidence, leading to weak consumer inflation.

When seen from this perspective, China's rebalancing toward consumption appears hesitant. But the narrative sits uneasily with what has unfolded on the ground in 2025.