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For instance, after a decline in iPhone sales in China, local brands such as Huawei and Vivo have gained market share, with consumers citing affordability, perceived quality improvements, and nationalist pride as motivations for switching.
Domestic Consumption: The Weak Sector
Despite China's impressive 5.5% GDP growth in 2023, much of it was boosted by revenge spending—a temporary surge of consumer activity following COVID-19 lockdowns. However, this momentum faded in the second half of the year, highlighting that domestic consumption remains fragile.