One reason consumption remains weak is the prolonged downturn in the property market.<\/p>\n
Real estate once accounted for as much as a quarter of China’s economic activity when related industries are included.<\/p>\n
But the industry has been in crisis for several years after a debt crackdown on developers triggered a wave of defaults and stalled construction projects.<\/p>\n
Home prices have fallen sharply in many cities since 2021, eroding household wealth and confidence.<\/p>\n
For decades, property served not only as housing but also as the main store of wealth for Chinese families.<\/p>\n
When prices were rising, households felt richer and more willing to spend.<\/p>\n
The real estate boom also generated vast revenues for local governments through land sales, helping finance infrastructure and public services.<\/p>\n
With property prices now stagnant or falling, that wealth effect has reversed.<\/p>\n
“China’s consumption challenge is largely about replacing the massive housing-investment demand engine,” DiPippo said.<\/p>\n
The downturn has also hit employment in construction and related industries, weighing on incomes and consumer confidence more broadly.<\/p>\n","protected":false},"excerpt":{"rendered":"One reason consumption remains weak is the prolonged downturn in the property market. Real estate once accounted for…\n","protected":false},"author":2,"featured_media":469243,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,1294,56,54,55],"class_list":["post-469242","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/469242","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=469242"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/469242\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/469243"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=469242"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=469242"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=469242"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}