HaavBline

The Chinese Consumer in Time of Financial Crisis

Most timely information about a most intriguing subject: How will Chinese consumers respond to a deep global recession?

I repeat my comments to another recent article in Seeking Alpha. It works as good here:

"China may just surprise the world in the spending side. The 'Little Emporor' generation, products of more than two decades of one-child policy, grew up in prosperity and spoiled. Some of them are quite capable of casually spending away every RMB they earn, plus their two parents modest incomes and their four grand parents' meager lifetime savings."

A more serious concern is that China now has too many college graduates than they will need. Goverment now worries that over 1 million of the 6 million new college grads next year will not be able to find jobs. Unlike their parents and grandparents who were battle-harden for very hard times in their lifes, these 'strawberry generation' know nothing about hardship. It will be interesting to see whether they can endure a global recession.