Part 7/10:
Against a backdrop of looming economic threats, consumer spending remains alarmingly low in China, accounting for only 39% of GDP. This pervasive reluctance to spend has roots in a deeply ingrained culture of saving, a response to historical traumas such as famines and economic instability. Additionally, the remnants of the one-child policy, which puts immense financial pressure on only children to support multiple elderly family members, exacerbate this saving trend.
Healthcare expenses further complicate the financial landscape. While urban areas like Shanghai and Beijing offer advanced medical care, the average cost of a hospital stay represents a significant portion of income, making it essential for individuals to prioritize savings over discretionary spending.