China Seeks to Spur Economic Growth Through Consumer Spending, But Middle Class Faces Uncertainty

China aims to fuel economic growth through increased consumer spending, but the outlook for the middle class remains uncertain due to job losses and shrinking wealth.

Education, travel, and electric vehicles rank as top expenditure categories for the middle class, but high costs and overcapacity dampen spending enthusiasm.

Tourism provides a temporary boost but lacks reliability as a long-term economic driver without significant infrastructure upgrades.

High saving rates and household debt, stemming from China's investment-driven growth model, constrain the consumption growth needed to power the economy.

Reforms to China's fiscal, tax, and welfare systems are needed to increase middle-class incomes and boost consumer confidence for more sustainable growth.