Raising household consumption is crucial for China

Significance

In human terms, these indicators represent lost income, financial insecurity and a fall in present and expected future living standards. The wave of protests last month highlighted deep and widespread resentment of this.

Impacts

• Rural areas appear to have come through the pandemic and lockdowns with less disruption than cities.
• Demographic change will play an increasingly large role in shaping household consumption.
• Household consumption, as a proxy for rising living standards, is a key source of legitimacy for the Communist Party.