The Chinese Are Now Spending As Much As Americans

In the US, the latest batch of data, released this week, showed retail sales climbed in December for the sixth straight month - though they missed expectations, with growth slowing to 0.3% MoM.

 

Retail

With the personal savings rate at a 10 year low, the US consumer is now fully tapped out: This latest uptick in spending has presumably been fueled by debt, as credit-card borrowing has reached an all-time high.

But another milestone in the history of global consumerism passed last month: As the  Washington Post  points out, China tied the US in 2018 in terms of domestic retail sales - according to data compiled by Mizuho.

 

WaPo

In some important categories, China has overtaken the US: With 17.6 million vehicles sold in the US in 2016, for example, but that was far below the 24 million passenger cars sold in China. US automakers account for about one out of every five cars sold in China, even though the communist party placed a 10% tax on luxury cars and trucks imported from the United States.

This economic heft has made the problem of confronting China intractable: China is now responsible for 20% of sales for some of the largest US corporations. This is making it difficult for Trump to confront Xi Jinping.

Any restrictions on Chinese access  to the US market would be met with barriers to American companies selling in China.

"China is one of the most important markets for many U.S. multinational companies,” Shen says. “This should lend China immense bargaining power."

One area where there's a lot of agreement across the political spectrum is to go after China's theft of US intellectual property. Over the summer, Trump ordered an investigation by the US Trade Representative Robert Lighthizer to examine China’s IP policies. That investigation is ongoing, and could lead the US to file a WTO dispute. Unilateral actions might include duties or import restrictions.

As the new year begins, it’s likely consumer spending in China will quickly surpass that in the US as more newly minted middle class Chinese discover consumer electronics, cars and fashion.

 

Comments

Laowei Gweilo tenpanhandle Jan 13, 2018 9:45 PM Permalink

top kek post, and will probably be underrated for how good the edit is. (or should be.)

but, sadly, I can tell who you're talking about o.0 

because while China just caught up to the US for total retail sales, China long ago passed US luxury retail sales (and is now something like 40-50% higher than US' market share).

so it actually is obvious who is buying the most Made in China =p

In reply to by tenpanhandle

Baron von Bud TBT or not TBT Jan 13, 2018 9:59 PM Permalink

The Chinese will learn the true viciousness that the white race is capable of. Look at the history of the English and then make it more cunning. That's what they're up against. Reminds me of the third time I was arrested for pot possession. I was pushed hard by a weed hating cop into a caged truck during their swing through the CA park. One of my caged companions was a Republican state assemblyman arrested for soliciting. The other was Oprah, I believe, arrested for chanting Black Panther incitement at a street riot. 1971 or so. I got off on a technicality - the judge's 18yo son was dating my sister's 14yo daughter. The two hours in that truck with these egomaniac hypocrites was a worse a punishment sentence than grand auto theft.

In reply to by TBT or not TBT

giovanni_f 847328_3527 Jan 14, 2018 2:36 AM Permalink

Stop whining, muthafucka-snowflakes and do your FUCKING homework: US is not the target as US car makers are absolutely irrelevant in the Chinese luxury car segment.

"Analysts and carmakers said the higher tax rate would likely have only a limited impact on mainstream luxury brands such as Mercedes-Benz, Audi and BMW that dominate China's premium car market segment."

Problem (for the US) is that the US car makers keep on producing difficult-to-sell horse crap. Trump doesn't get it that most buyers on this planet don't like cars that look like they've been designed by Kim Kardashian (apart from being 10-20 years behind technology-wise).

 

Bonus question: Which car drives Bernie Sanders?

 

In reply to by 847328_3527

gougeonit NoDebt Jan 14, 2018 7:03 AM Permalink

" All this "free trade" shit has to be redone. "

What free trade agreement with China?  There is none. Your corporations packed up your assembly plants and factories and shipped them off to China looking for cheap profits, and guess what; They got their profits and all you got was the cheap shit. 

You were bought packaged and sold by Nixon, Ford, Clinton, and the rest of the gang. You got fucked by your own country men!        I guess what happens when you pray to the almighty dollar.

 The Game's over, you guys lost; All this is woulda coulda shoulda

 

 

In reply to by NoDebt

roddy6667 NoDebt Jan 14, 2018 9:52 AM Permalink

What luxury American cars does China import from America? Cadillac has been made in China for a long time. They just opened a new Escalade factory. Lincoln is imported, but a factory is opening in ChangAn next year. Currently a Navigator costs about $150,000 USD>

Some people pay the extra 15-20% tariff to drive a Subaru here. WTF? Must be a bunch of rich lesbians.

There will be no increase in any tariff on American luxury cars imported to China. By next year they will all be made in China.

In reply to by NoDebt

privateparts501 IH8OBAMA Jan 14, 2018 12:40 AM Permalink

China-- 1.4 billion

US  -- 325 million

China has appox 4x the population of the U.S.

Source http://www.worldometers.info/world-population/china-population/

 

5.8 trillion divided by 1.4 billion is about $4142.85 per person if divided equally but there are tens on millions living in abject poverty with no income so the wealth spending is disproportionate. But still, spending a mere 4k per person per year still indicates a very widespread level of poverty as we Americans define it.

Of course, Americans by the same math indicates a 17k per year spending and again, the spending is not equal among Americans.

 

 

In reply to by IH8OBAMA

roddy6667 privateparts501 Jan 14, 2018 9:59 AM Permalink

You are assuming that things cost the same in China as in the US. False. If a household (4+ people) has an income of $9600 USD a YEAR in China, they are the same as an American middle class family. A frugal family can live a blue collar life (not poor) on $6000 a year. That's only $1500 a person. A year.

Over 80% of Chinese don't have to pay rent or mortgage because they own their home. There is no property tax in China. Utilities like heat, electricity, house phone, mobile phone, cable TV, and Internet are supplied by the government and are extremely cheap. Families live together. They don't have three generations living in three houses. Most people don't own or need cars because public transportation is excellent and extremely cheap. They don't have car payments, insurance, repairs, gasoline, taxes, all that. College is affordable and paid for with savings. NO student loans.Very few people have credit cards. People use debit cards like UnionPay. The average Chinese saves 36% of his paycheck for the future, so you can cut those numbers about household income by 33%. That's how much they are spending.

Americans have all these expenses and more. They have a higher income, but by the time they pay all the bills, there is no money left for "luxury items".Americans have a negative savings rate. Any meager savings they have is negated by the massive debts they are running.

In reply to by privateparts501

roddy6667 Vuke Jan 14, 2018 9:56 PM Permalink

5X. My wife and I live on less than $20,000 US a year. We have an upper middle class life here, and travel three times a year. Last year we went to Thailand, South Korea, and Japan. We are generous with her family and our granddaughter. We have more money in our account now than last year. We never touch our retirement accounts, just live on SS and a small pension.

America is a very expensive place to live, work, or run a business, especially with the world's most expensive health care.

Take a piece of paper and draw a line down the middle, top to bottom, and make a decision list. List all the pro's for staying in America on one side, and all the con's on the other side. This puts it in writing in front of you, not a bunch of vague ideas swirling around your brain.

Try it.

In reply to by Vuke

Laowei Gweilo TBT or not TBT Jan 13, 2018 10:10 PM Permalink

yes and yes =p

first yes, insofar that most "luxury" is shit =p

second yes, being that I think if you loosely define all luxury retailers (e.g. the Nordstroms) and include their lower-end brands (e.g. the stuff that has a lot 'Made in China'/Indonesia/or at least Portugal, such as the Ralph Laurens and Coachs and the secondary 'mall' brands such as AX or McQ), rather than defining 'luxury' as just the pure fashion houses (the Chanels and Pradas) or shit that costs five digits (the Hublots and Hermes), then yeah I think the US may still have higher spending. I think most metrics that show China long passed US in 'luxury' when defining 'luxury' as more high-end [price wise ... as to avoid the 'quality' or 'value' discussion that probably doesn't need to be discussed on ZH heheheh]. 

so I would agree the definition matters, both cynically and critically ^_^

In reply to by TBT or not TBT

Endgame Napoleon hoist the bs flag Jan 14, 2018 6:32 AM Permalink

These America Last POTUSES also rolled up theirs sleaves and did their part to demolish the wall between the US and China:

  • Clinton 
  • Obama

I had Bush on the list, but then remembered his skirnishes over steel tardifs and a US military plane that crashed and was ransacked for information in China. 

In the same way, counterfeiting of US products has meant that, in addition to American factory workers losing their middle class prosperity, Americans who design the products also lost work. 

The Democrats—the so-called party of labor—were even worse than the globalist Republicans at facilitating the selling of their country’s jobs out to foreign countries. 

Swampian handiwork resulted in massive profits for a few elites and a middle class in the gutter. It would look even worse in this majority-unmarried country if per-capita income replaced medium [family] income as a less deceptive way of reporting labor data. 

 

In reply to by hoist the bs flag

Xena fobe Endgame Napoleon Jan 14, 2018 10:22 AM Permalink

Multinational corporations never passed even a portion of their gain from outsourcing down to the consumer.  They didn't have to because they are monopolies.

We can't unite for justice because they keep importing additional competitor groups and providing these groups with advantages we don't have.  

Instead of increasing everyone's standard of living, globalism has been a zero sum game.  

Good point about reporting of per capita income.  

 

In reply to by Endgame Napoleon

MK ULTRA Alpha Jan 13, 2018 9:37 PM Permalink

The communist and one worlders have successfully broken the back of the "American Dream" for the "Chinese Dream". This with the success of "Open Borders" and the Homosexual Rampage destroying American culture and values. 

The Democratic Communist Party is openly calling for a race war and homosexuals and communist working in media and the government are inciting extreme violence against white Americans.

While over 200,000 Chinese intelligence agents clean the US out of all technology and work on campus to be a part of the political disruption and cultural destruction of our nation.