China's retail recovery still rests on richer consumers

While the supply side of China's economy has shown resilience, a strong and broad rebound in spending is needed for a more meaningful economic recovery. Foto: Reuters/Aly Song

Chinese consumers are finally starting to spend again after the pandemic-induced slump, but the recovery is unbalanced and overly reliant on luxury goods, with poorer Chinese still cautious.

Consumption has started to catch up to the much stronger rebound in industrial output, with retail sales growing in August for the first time this year. Spending on luxury goods, cars and electronics is leading the charge, rising faster than food, clothing and other essentials...

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