Title: The Chinese consumption myth

Authors: Kerry Liu

Addresses: The China Studies Centre, University of Sydney, Australia

Abstract: Whether Chinese consumption is downgrading or upgrading has been the subject of recent debate. This study begins with a review of different types of consumption data, including gross domestic product data, household survey data and retail sale data, and concludes that Chinese household consumption expenditure growth has been slowing since 2011. Next, the factors that contribute to consumption growth, consumption upgrade, and consumption downgrade are analysed. The main findings are that disposable income plays a significant role in consumption growth; that wealth effects from the real estate market play a significant role in consumption upgrade; and that increasing rent has significantly contributed to the consumption downgrade. Finally, this study discusses policy implications based on findings from this study, especially with respect to the real estate market.

Keywords: Chinese consumption; consumption upgrade; real estate market; consumption downgrade.

DOI: 10.1504/IJEPEE.2022.120062

International Journal of Economic Policy in Emerging Economies, 2022 Vol.15 No.1, pp.103 - 120

Received: 16 Apr 2019
Accepted: 01 Apr 2020

Published online: 06 Jan 2022 *

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