Huge Household Debts Weigh on China’s Consumer-Driven Economy: Expert

A customer shops for vegetables at a supermarket in Fuyang in China's eastern Anhui Province on March 9, 2022. STR/AFP via Getty Images

In the face of an economic slump, China’s State Council emphasized that it would continue the strategy of expanding domestic consumption in its 2022 work report released on March 5. However, boosting the economy by pushing the Chinese people to consume more is likely unattainable for the Communist regime, according to professional analysis.

Katherine Jiang, a Hong Kong-based financial analyst, told The Epoch Times that the Chinese Communist Party (CCP) has three insurmountable obstacles in its economy-driving efforts: lack of consumer confidence, over-load in household debt, and layoffs and low incomes caused by the CCP’s unstable policy.

Lack of Consumer Confidence

Official figures show that China’s consumption growth in 2021 was lower than in 2019 before the outbreak of COVID-19. Especially sluggish are household consumption, and a negative growth in tourism, accommodation, and movie box office revenues compared to 2019.