Beijing – For people in China who face an economic slowdown, all Yuanes counts these days.
During the last New Year’s Lunar Vacation, the construction worker Huang Peng took a high -speed train to his hometown in the province of Heilongjiang, traveling more than 500 miles in approximately six hours.
This year he took a slow train, paying 160 yuan ($ 22) to sit in a vertical position for 18 hours. For Huang, that was a much more affordable option than the high -speed train ($ 92) or even a bed on the slow train ($ 40).
Although Huang earns more money in Beijing than at home, life expenses in the Chinese capital are high.
“It’s very difficult to save money,” he said in an interview at Beijing’s train station.
The lunar new year is the largest year of the year of China and a traditional spending meter, since hundreds of millions of people travel to see the family in the largest annual human migration on the planet.
Chinese travelers made a total of 501 million national trips during the eight -day holiday, an increase of 5.9% compared to last year, the Ministry of Culture and Tourism said Wednesday when the country returned to work. They spent 677 billion yuan ($ 93 million) on national tourism during the holidays, the ministry said, 7% more compared to last year.
But upon entering the year of the snake, Chinese consumers seem to feel tight.
Although China’s per capita consumption expenditure grew more than 5% last year, about 28,200 yuan ($ 3,900), consumer confidence is at least at all times, which affects retail sales in sectors such as sectors such as sectors such as sectors such as sectors such as sectors such as sectors such as clothing and cosmetics. That could limit the growth of the Gross Domestic Product in the long term as China adapts to the slowest growth in general.
The increase in consumption is considered vital to reduce China dependence on exports, even more as US tariffs and Chinese counter-tarifa agitate the fears of a total commercial war between the two largest economies in the world.
Chinese buyers are more focused on finding offers, with discount retailers such as the Walmart Sam Club that become local favorites.
“This year, I find myself buying for quality and value for money,” said a woman named Ren who was on Wangfujing’s commercial street in Beijing before the holidays. “For example, I also buy clothing with discounts and snacks.”
In an effort to encourage spending, Beijing has been pressing an expanded consumption exchange scheme that offers appliance subsidies such as microwaves and rice kitchens, as well as electronic items such as smartphones.
Although officials have not shared the total cost of incentives, the Ministry of Finance said last month that the Government had assigned so far 81 billion yuan ($ 11 billion) for businesses of consumer goods to support consumption In 2025, Reuters reported.
Buyer Xu Zicong said he saved 1,500 yuan ($ 208) on his new iPhone 16, thanks to the subsidy combined with discounts from the retailer and Apple, whose sales of China are slowing down while facing a growing competition of national rivals such as Huawei and Xiaomi.
“If there were no government subsidy, I would not consider buying an iPhone now,” Xu said in an electronics store in Beijing. “I could wait or get a cheaper phone from other brands.”
Subsidies also apply to online sales, where buyers find a flood of offers in everything, from movie tickets to restaurants and trips.
In a speech last week before the Lunar New Year holidays, Chinese leader Xi Jinping acknowledged that he faced “a complex and challenging situation”, but said that Beijing had “introduced a package of new measures, thus facilitating recovery and improvement of the economy “.
Experts say that Chinese officials may need to introduce more aggressive stimulus measures.
“The subsidies have been very successful since its launch,” said Tiannchen Xu, a senior economist of the Economist Intelligence Unit in Beijing. “However, the effectiveness could fade if the government adheres to the same strategy of only subsidizing lasting goods.”
Meanwhile, Huang expects a more comfortable trip home for the next vacation in the lunar new year.
“If I win more money next year,” he said, “then, of course, I will take the high -speed train and enjoy luxury.”
Eunice Yoon reported from Beijing, and Jennifer Jett reported from Hong Kong.
Hilary Pan, CNBC and Peter Guo contributed.
