This podcast episode explores revenge spending in China's economy and why there is limited evidence of it in official statistics. Despite expectations of a surge in consumer spending after the lifting of COVID-19 restrictions, China's economy remains weak, with higher unemployment and declining sales. The decline in international tourism, logistical challenges, and political circumstances have contributed to the lack of revenge spending. The episode highlights the impact of Chinese consumers' spending patterns, including a focus on big-ticket items and a more conservative approach to spending compared to US consumers. The high savings rate and lack of household focus stimulus in China have further deterred revenge spending. The restaurant industry, particularly luxury establishments, has been affected by cautious spending behavior, but entrepreneurs like Nathan remain committed to providing high-quality products. The complexity of China's economy is emphasized, urging a consideration of real stories and anecdotes alongside official statistics.
