Part 10/14:
China’s efforts to revive domestic consumption have largely been ineffective. The government introduced a 300 billion yuan subsidy program for electronics and autos, coupled with interest subsidies on consumer loans. Yet, these incentives resemble small “soy sauce” to the “big chicken”—a symbolic gift unlikely to motivate sustained consumer spending.
The food and restaurant industry, a key component of domestic consumption, has suffered from strict government policies. Recent anti-banquet policies have essentially prohibited civil servants from dining out, collapsing the white liquor industry—which has declined sharply since 2017 and could soon vanish altogether.