After years of enjoying the fruits of a booming economy and sharply rising disposable income, life for many of China’s higher earners is getting harder. Amid mounting debt levels and economic headwinds, urban middle-class consumers have responded by scaling back their discretionary spending and reducing luxury purchases—an emerging phenomenon known as the “consumption downgrade.” The newfound frugality of middle-class spenders may be good for their wallets, but it is an unwelcome development for Beijing.
Liquor tax in China is lower than in most other countries. Prof Brian Viard on whether there is a case for raising it.
Carnegie Endowment’s Yukon Huang offers a new perspective and demystifies some popular notions about China, such as fears about the real estate bubble.
Agriculture in China is still primitive and needs to be modernized quickly. But whose responsibility is that? Wang Liang is a farmer in the northeast province of Heilongjiang, China’s top corn producer. Despite fertile soil, Wang says the small size of his plot limits his crop yield and income. Both took a hit last year […]
According to former Morgan Stanley Asia Chairman Stephen Roach, China is transitioning to a more stable economic model with a greater—and healthier—emphasis on consumption and services. China’s economy is showing more signs of slowing down, but it’s the interpretation of the slowdown that really matters. Some, like billionaire investor George Soros, warn that China’s economy is “running out […]