Cooking instead of eating out, saving more, traveling more cheaply: on the streets of Beijing on Monday, the Chinese say they are suffering from the economic slowdown, which they consider to be lasting, but remain confident in the long term.
“This year, both businesses and people are really feeling the economic pressure,” Yu Qi, a 55-year-old man wearing plugged-in headphones, told AFP.
“This pressure seems even stronger than three years ago, during the pandemic. That’s really the general impression that my friends and I have,” said this insurance company employee.
China saw its economic growth slow again in the second quarter, with GDP increasing by only 4.7% over the year. This pace, announced on Monday, is certainly the stuff of dreams for many countries – particularly in Europe.
But it is the weakest since the beginning of 2023, just after the lifting of draconian restrictions against COVID-19, which penalized activity. Far also from the growth of more than 10%, usual during the period 1980-2010.
The economy is at the heart of a political summit meeting being held in Beijing until Thursday, around President Xi Jinping.
Clothing and holidays
“Two years ago, we often went to restaurants for fondue. But now, to save money, we cook at home instead!” explains Zhao Qing, a 39-year-old finance employee.
“For clothes, I used to go to department stores. Now, I go online or to small boutiques to find cheaper items,” she says outside a cafe where trendy Beijingers come to pick up takeaway drinks.
The real estate crisis, high unemployment among young graduates, difficulty changing jobs, businesses that closed during the pandemic… Everything encourages people to reduce their consumption.
“We are going abroad less for holidays, we are choosing closer destinations with fewer stops, to reduce costs,” Li Xiaojing, a 43-year-old office worker, told AFP.
However, there is no question of sacrificing everything.
“The last thing we’ll cut is children’s entertainment,” Yu Qi said.
” Not that serious “
However, all say they have eased off on major expenses, such as buying real estate.
“We think the economy will stagnate for quite some time, so there is a certain pessimism […] “Everyone tends to manage their money a little more cautiously and save,” Li Xiaojing said.
“When we see the current situation, even a slight improvement does not seem possible in the short term,” laments Yu Qi, the fifty-year-old, who says he hopes for “a more peaceful world” and therefore more conducive to peaceful economic exchanges – an implication of China-United States relations.
In the long term, most remain optimistic, confident in particular in China’s potential for innovation.
“When I was 20, a young university graduate, growth was incredible. So if now, for a period, it stagnates or slows down a little, it’s not too serious,” says Li Xiaojing, the forty-year-old, because China has had time to develop a lot since then.
“The economy works in stages. Sometimes it prospers, sometimes it is gloomy. Now we are in a trough,” Zhao Qing emphasizes. “But I am convinced that the situation will improve!”