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China Struggles to Shift Households from Saving to Spending

3/20/2026

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Summary

Story summary

China's leaders are pushing to boost domestic consumption amid weak exports and a sluggish property sector.
They seek to make households the main growth driver, but changing spending habits proves difficult.
Household consumption accounts for less than 40% of GDP in China, versus about 70% in the United States.
High housing costs, income inequality, and a limited social safety net reinforce saving, with households saving about one-third of income.

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Story summary

China's leaders are pushing to boost domestic consumption amid weak exports and a sluggish property sector.
They seek to make households the main growth driver, but changing spending habits proves difficult.
Household consumption accounts for less than 40% of GDP in China, versus about 70% in the United States.
High housing costs, income inequality, and a limited social safety net reinforce saving, with households saving about one-third of income.