[Vox pop] Cash is king: The practical shift in Chinese spending habits
As the economy slows and the trade war drags on, Chinese consumers are changing the way they spend. Whether on daily necessities or big-ticket purchases, caution is the dominant mood, but it’s not without signs of resilience and adaptability. ThinkChina’s Yi Jina finds out.
For most Chinese consumers, spending has become far more calculated, with many cutting back on clothing and food. Yet this doesn’t necessarily mean sacrificing all lifestyle comforts. Fierce competition in the F&B sector has made dining out cheaper. As one put it, “It’s a passive downgrade.” People spend less because prices have dropped.
Practicality is also shaping car choices. Interest among Chinese consumers has shifted decisively toward new energy vehicles (NEVs), with value and fuel efficiency now taking priority over status or luxury.
At the core of this more cautious mindset is a renewed preference for cash over volatile investments like property or stocks. “It just feels safer to hold onto my cash,” one person shared — a sentiment that encapsulates the growing instinct to maintain liquidity in uncertain times. Younger consumers are more divided: some live paycheque to paycheque, while others continue to prioritise saving.
Concerns about the ongoing US–China trade tensions have not significantly altered daily spending for most. That’s partly due to China’s strong domestic supply chain, which has softened the blow of higher prices on imported goods. Several interviewees expressed a willingness to avoid foreign brands entirely if tariffs made them too expensive, suggesting a shift towards self-reliant consumption.
While many acknowledge that their spending power and their willingness to spend have declined, optimism hasn’t disappeared. There remains broad confidence in the government’s ability to stabilise the economy and in the long-term strength of China’s domestic market, even if results take time.
