
"China's economy is stuck in the doldrums. Youth unemployment is at a two-year high. Housing prices have been falling for more than four years, and many believe they're yet to hit bottom. And Chinese consumers, like 32-year-old Lu Yingcai and 36-year-old Liu Lu, who NPR recently met on the streets of Beijing, are tightening their belts. LU YINGCAI: (Through interpreter) I'm actually traveling less and eating out less often."
"For decades, rising home prices was a real source of confidence for Chinese consumers. Then the country's real estate bubble collapsed in 2021, and suddenly, millions of Chinese found their biggest investments underwater. JEREMY MARK: As soon as that was threatened, essentially everybody just stopped spending and worried about the future in a way that they hadn't had to do for a generation."
China faces slowing growth with high youth unemployment, a four-year housing price decline, and weakened consumer spending. The real estate bubble collapse in 2021 left many homeowners with underwater investments, reducing household confidence. Consumers report traveling and dining out less, and postponing clothing purchases. Government has offered incentives to boost big-ticket spending on cars, appliances, and smartphones, yielding temporary gains. External pressures include potential U.S. tariffs and China's controls on rare earth minerals. Communist Party leaders will meet to set economic policies for the next five years amid these domestic and international challenges.
Read at www.npr.org
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