China's consumer crisis: Looting and weak market threaten the future!

China's consumer crisis: Looting and weak market threaten the future!

China's economic situation: consumption crisis and demographic challenges

China is currently experiencing a consumer crisis that is proving to be a serious threat to economic stability. This was particularly evident during Golden Week, a period when high spending is usually expected, but the reality is different. People are spending less, indicating weak consumption and generally declining confidence in the market. This is reported by the Time. Government subsidies that are intended to strengthen the economy instead encourage harmful price wars. In addition, local governments are looting private companies, which further undermines investor confidence.

Demographic crisis is driving developments forward

But these are not the only worries plaguing China. The country is facing a demographic crisis that is putting significant pressure on the social and economic structure. The aging population and the falling birth rate are bringing with them a changing population structure. The number of people of working age is decreasing, while at the same time the number of seniors is increasing. Loud Chobserver This will lead to future-oriented economic and social problems.

### A slow farewell to the economic boom

In 2023, China's economy grew by just 5.2 percent, below expectations and raising doubts about future economic stability. As of 2023, China's population remained at 1.4 billion, but declined for the second consecutive year. This makes the challenge even more tangible. The number of births fell to historically low levels: 9 million births compared to 11 million deaths, which corresponds to a continuous decline in the birth rate. Despite the abolition of the one-child policy and the allowance to have up to three children per couple, the hoped-for increase has not materialized. High costs of living, poor living conditions and a declining willingness to marry are considered the main reasons for this development. Tagesschau highlights that China has fallen to second place among the most populous countries behind India.

### Challenges and Solutions

The economic difficulties are further exacerbated by geopolitical tensions, particularly with regard to the USA, where restrictions on chip supplies are weighing on the industry. Demand on the global market is weak and the real estate market is in crisis. This means that many companies are under pressure. Experts warn of a long-term downward trend that could endanger economic growth. Accordingly, comprehensive measures are urgently needed. Initiatives to recruit migrants and programs to support families are intended to stimulate birth dynamics and create balance. Automation and technological developments are also necessary steps to compensate for labor shortages and increase productivity.

Overall, it can be said that the combination of an ongoing consumer crisis and a demographic challenge poses immense tasks for China. The longing for better times seems to be strengthened by the melancholic mood among the population. The coming years will have to decide how the country can meet these challenges in order to regain its economic stability.