CNBC's The China Connection newsletter: China's weak consumer becomes the world's problem
CNBC's newsletter examines China's slowing consumer spending and its global economic implications. The report highlights the impact of declining home prices and the resulting tensions in international trade policy.
Why it matters
Explains how domestic economic struggles in China are influencing global trade relations and G20 policy debates.
Hi, this is Evelyn, writing to you from Singapore. Welcome to the latest edition of The China Connection — a snapshot of what I'm seeing and hearing from local businesses.
For a few years now, lackluster consumer spending has underpinned many conversations around China. Against persistent exports growth, the domestic sales challenge has become more stark — and globally relevant. Is there a solution?
Consumers in China have good reason to be cautious.
For years, their disposable income grew at more than twice the rate of consumers in the U.S. Wind data going back to 2003 shows that until 2020, people living in Chinese cities could expect around 10% or faster growth in disposable income every year, far above the 3% average in the U.S.
But that's slowed drastically in the last several years to 4.3% in 2025, barely better than the U.S. at 3.8%.
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