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Why don't Chinese spend more money?
Posted on 12/27/10 at 2:57 pm
Posted on 12/27/10 at 2:57 pm
2
Posted on 12/27/10 at 3:03 pm to kfizzle85
I was always under the impression that one of the reasons the Chinese don't spend much money is because of the poor male/female ratio. They had to have that money to compete for women.
I'm sure there are many more.
I'm sure there are many more.
Posted on 12/27/10 at 3:15 pm to kfizzle85
quote:
Why don't Chinese spend more money?
quote:
From 1989 to 2006, average annual household income almost tripled, from RMB12,830 to 32,040 in real terms. (To give you an idea, at current exchange rates, that's a jump from about $1,900 to $4,800.)
Could it be one of the reasons is because, as a nation, China is still dirt poor??? $4,800/household? $400/month per household?!? What are they going to do, go out and buy Cadillacs or $3,000 HD 3-D TV's with that kind of money?
And, as the rest of the article pointed out, with free market economics being introduced which affects goods the Chinese buy as necessities, they still don't have a huge amount of discretionary income.
Plus, as Rivers pointed out, Chinese citizens are now allowed to buy gold......
Posted on 12/27/10 at 3:35 pm to LSURussian
quote:
And, as the rest of the article pointed out, with free market economics being introduced which affects goods the Chinese buy as necessities, they still don't have a huge amount of discretionary income.
I would also guess that even those with better incomes likely spend less than similar counterparts in the U.S.
Even among Americans, I would say that it is more common for people who are not far removed from doing without to be more frugal when they start doing better.
That's just a guess on my part of course, but I think there's some merit to the idea.
Posted on 12/27/10 at 3:56 pm to ShortyRob
quote:No doubt. I know when I worked in Beijing I learned the Chinese pay almost nothing for their electricity...something like $10/month at that time (2001). Most necessity food items were still heavily subsidized, especially noodles and fish.
I would also guess that even those with better incomes likely spend less than similar counterparts in the U.S.
I never traveled outside of Beijing except for one week in Dalian, a relatively prosperous, industrial port city just west of the Korean peninsula. I have to think in the rural, less industrialized parts of China, the population is still really poor.
Posted on 12/27/10 at 4:19 pm to LSURussian
You see this in all large, developing economies: consumer spending goes from being a small part of the economy to a very large part of the economy as it continues to develop: The same happened in the US, where fixed investment dominated GDP growth during the industrialization and laid the groundwork for future wealth generation.
But, what gets consumers spending is the development of a social safety net, and the Chinese are understand and are working on that.
But, what gets consumers spending is the development of a social safety net, and the Chinese are understand and are working on that.
Posted on 12/27/10 at 5:48 pm to I Love Bama
quote:
I was always under the impression that one of the reasons the Chinese don't spend much money is because of the poor male/female ratio. They had to have that money to compete for women.
Less women = more money. Makes sense to me.
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