With over 400 million, China’s middle class is larger than the population of the United States. This group is expected to drive consumption and economic growth. The Chinese middle class, however, have instead tightened their purse strings. Savings hover near record highs. In China, the luxury goods market saw a 20 percent drop in sales last year. It is the sharpest decline in 14 years and spending in this sector is expected to be muted in 2025. As Chinese suppliers look to other markets to absorb their products, small businesses in Southeast Asia struggle to compete with deluge of low-priced Chinese exports. Spurring investment and consumption have been high on the government’s agenda, but a trade war with the US is escalating. What happens if the world’s largest middle class continues to scrimp and save? 00:00 China's middle class reduces spending 01:17 Consumer spending over China's Spring Festival 04:20 Rise of China's middle class 07:09 How much does middle class spending amount to? 08:19 Change in middle class spending 09:47 Increase in middle class saving 11:23 Why is China's middle class reluctant to spend? 14:11 Slow economic recovery after COVID-19 18:03 Impact of government stimulus package on property 20:08 Trade-in initiative on household goods to encourage spending 23:13 Signs of tightening purse strings 28:23 China's deflation streak 28:06 How decrease in China's local spending has affected Thailand 32:08 South East Asia raises restrictions on Chinese goods 34:29 Is the Chinese middle class dream still alive? 36:43 Is a university degree still the path to a middle class life? 40:51 Xi's "Common Prosperity" push 43:09 US tariffs threaten China's economic recovery ========= ABOUT THE SHOW: Insight investigates and analyses topical issues that impact Asia and the rest of the world. ================== #CNAInsider #CNAInsight #Asia #China #Chinese #LuxuryGoods #MiddleClass #SoutheastAsia #Consumption #Economy #UnitedStates #USA #Tariffs #Export #Property #University For more, SUBSCRIBE to CNA INSIDER! cna.asia/insideryoutubesub Follow CNA INSIDER on: Telegram: t.me/CNAInsiderSG Instagram: www.instagram.com/cnainsider/ Facebook: www.facebook.com/cnainsider/ Website: cna.asia/cnainsider

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