- Covid-Economy: China’s consumers aren’t spending enough money
- Greater Bay Area becomes home to successful startups
- Further regulations unsettle tech industry
- Chinese military exercise off Taiwan’s southern coast
- Xiaomi plans car factory
- US antitrust case against Chinese companies dismissed
- In Profile: Geopolitics expert Manisha Reuter at ECFR
Not far off Taiwan’s southern coast, Chinese warships are once again circling to defend the “national sovereignty” of the People’s Republic. Only time will tell how far Beijing is actually willing to go to secure its claim over the island nation. Most certainly, however, the recent events in Afghanistan will have a strong impact on the Taiwan affair. Chinese media have already identified it as the end of American leadership.
But this is wishful thinking. Instead, Washington’s determination to confront China’s expansionist policy in the region is likely to surge. Marked by the failure at the Hindu Kush, the US certainly won’t subject itself to another round of mockery like the one it currently faces – and not only from China. But that is just by the by.
Because today we are mainly looking at economic developments in the People’s Republic. Domestic consumption is usually a critical area. This is not changing, even if the habits of Chinese consumers may have changed during the Covid pandemic. Beijing, meanwhile, has fewer troubles when it comes to innovative young talent. The number of young, highly valued tech companies is growing faster than anywhere else in the world. Only the US owns more of these so-called “unicorns”.
Marcel Grzanna
Feature
Despite low Covid numbers: Consumers remain cautious
The Covid pandemic has accelerated a certain trend in Chinese consumer behavior. The exceptional circumstances of the past 18 months, marked by the fight against the spread of the virus, have made ice cream, milk or bottled water, for example, more sought after by the population.
As for Ice cream, probably because Chinese households have discovered the healing effect of sweetness for the soul in times of restrictions with curfews, quarantine regulations and lockdowns. According to the latest China Shopper Report 2021 by consulting firm Bain & Company, which has been analyzing purchasing behavior in China for ten years now, prior to the pandemic, ice cream was a product people did not really like to indulge at home, but instead was consumed on trips, during a stroll in the park or in restaurants. Now, things have changed, and it seems like Chinese consumers have discovered a new passion. Sales figures remain consistently higher than before the pandemic.
Milk also saw a much higher demand after a well-known Chinese physician attributed it with an immune-boosting effect in April 2020. Concerns for the health of family and oneself spurred sales of bottled water for cooking or drinking. Tap water is no longer trusted by consumers. In addition, people are generally cooking and dining more at home.
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