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Asia Times of 26 June 2025 asked this important question. It noted: ‘Generally speaking, China’s 1.4 billion people sock away (i.e. save) about one-third of income.’ One net conclusion: ‘…without key reforms, citizens will keep savings over consumption’.
A CNBC report, also of 26 June, said: ‘Chinese Premier Li Qiang’s bold talk of building a “mega-sized consumer powerhouse” has a serious economic gravity problem.’2 It added that though Li has only been on the job since March 2023, his boss, Xi Jinping, took the reins of power a decade earlier. Back in 2013, as Xi had pledged to let market forces play a decisive role in China’s economy, and a key policy priority was to shift away from exports and investments. CNBC added: ‘Recent data serve as a reminder of how much this aspiration remains, at best, a work in progress. Chronically weak consumer confidence and spending is pushing China further and further down the road to deflation’.
Former Indian Ambassador/ High Commissioner to Algeria, Czechoslovakia, Kenya, Mauritius and Germany; Professor Emeritus, DiploFoundation, Malta and Geneva; and, Emeritus Fellow, Institute of Chinese Studies, New Delhi
kishanrana@gmail.com
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