Marketplace Morning Report Can China spur consumer spending?
Nov 24, 2025
Stephen MacDonald, a BBC correspondent based in Beijing, sheds light on China's economic landscape, focusing on its surprisingly low consumer spending. He discusses the alarming youth unemployment rates and stagnant wage growth that are impacting domestic consumption. Despite government efforts to stimulate spending, challenges persist. The conversation also touches on broader themes, including inflation expectations and shifting consumer behavior as people increasingly seek discounts during the holiday shopping season.
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Price Sensitivity Shapes Holiday Spending
- Consumers are price sensitive and stretched by higher prices this holiday season.
- Shoppers will favor deals and cheaper retailers, indicating constrained household budgets.
Shoppers Plan Deeper Discounts And More Credit
- Deloitte's holiday survey finds planned spending down as shoppers chase deep discounts.
- Many plan to rely on credit cards or buy-now-pay-later despite cutting overall spend.
Consumption Plays A Small Role In China
- China's economy relies far more on exports and investment than on domestic consumer spending.
- Young people save more and face high unemployment, limiting consumption's share of GDP.