2020年CRI Is China really going through 'Consumption Downgrade'?

 

Some economists² with a pessimistic attitude toward China's consumer confidence believe the trade war panic and China's economic slowdown are factors behind the success of e-commerce site Pinduoduo and the popularity of low-price products.

Pinduoduo is a popular, fast-growing e-commerce platform for low-price products in China.

Every day, millions of Chinese shoppers order daily necessities on the site, with rising sales of instant noodles, pickled vegetables, and cheap clothing.

Some economist¹ interpreted this as a signal of a 'consumption downgrade.'

However, Zong Qinghou, chairman and general manager of Wahaha Group, largest beverage³ producer in China, offered a different opinion at a high-level seminar in Beijing.

"So currently there is a popular belief that there's been a consumption downgrade because of a dip in people's income, causing an overall downgrade in expenditures⁴. But I see just the opposite. Our market consumption is upgrading. China now has a 3-4 million strong middle-class among the 1.4 billion population, and they are living a well-off life.”

According to Nielson's China Consumer Confidence Index, consumption remained strong through the Q2 of 2018.

Official stats also show that the country's consumption in the first half of this year has taken up 78% of the overall economic growth.

Golden Eagle International Group Chairman Roger Wang says consumption has a great impact on the Chinese economy.

“By 2018, the Per capita GDP in China has exceeded 9000 U.S. dollars. Indicating that we are a middle-income leveled society. Consumption per capita is also on a rise, including poverty areas. Consumption has a great boost to the economy, which is of great potential and driving force."

Nicholas Lardy, Anthony M. Solomon Senior Fellow at the Peterson Institute for International Economics explains the reason behind the consumption rise.

"China is the only major economy in the world where the wage share of GDP is going up. If you look at the OECD countries, the wage share of GDP is basically on average flat. In the US is been gradually going down in recent years."

In recent decades, China has played a major role in global growth. Chinese consumers have helped global companies like Apple, Volkswagen and many others to expand.

1 economist   

n.经济学家，经济专家，节俭的人

参考例句：

• He cast a professional economist's eyes on the problem.他以经济学行家的眼光审视这个问题。
• He's an economist who thinks he knows all the answers.他是个经济学家，自以为什么都懂。

2 economists   

n.经济学家，经济专家( economist的名词复数 )

参考例句：

• The sudden rise in share prices has confounded economists. 股价的突然上涨使经济学家大惑不解。
• Foreign bankers and economists cautiously welcomed the minister's initiative. 外国银行家和经济学家对部长的倡议反应谨慎。 来自《简明英汉词典》

3 beverage   

n.(水，酒等之外的)饮料

参考例句：

• The beverage is often colored with caramel.这种饮料常用焦糖染色。
• Beer is a beverage of the remotest time.啤酒是一种最古老的饮料。

4 expenditures   

n.花费( expenditure的名词复数 )；使用；（尤指金钱的）支出额；（精力、时间、材料等的）耗费

参考例句：

• We have overspent.We'll have to let up our expenditures next month. 我们已经超支了，下个月一定得节约开支。 来自《简明英汉词典》
• The pension includes an allowance of fifty pounds for traffic expenditures. 年金中包括50镑交通费补贴。 来自《简明英汉词典》