Illustration: The difficult lives of elderly people in rural China (Getty Image)
[People News] Anbang has conducted a comparative analysis of consumption patterns between China and the United States.
1. Overall Comparison of Consumption Capacity
The total social consumption expenditure in the United States for 2024 is estimated at $20.26 trillion (approximately 141 trillion RMB), with the following breakdown:
1. Goods consumption makes up 31% ($6.35 trillion)
2. Service consumption constitutes 69% ($13.91 trillion)
In contrast, China's total retail sales of consumer goods for 2024 are projected to be $6.85 trillion (around 48.9 trillion RMB), divided as follows:
1. Goods consumption accounts for 54% ($3.70 trillion)
2. Service consumption represents 46% ($2.15 trillion)
China's total goods consumption is slightly more than half that of the United States, while service consumption is notably insufficient.
2. Illustrative Examples of Per Capita Consumption Disparities
1. Meat Consumption
The average per capita meat consumption in the United States is 104 kg, which is 2.61 times that of China.
In China, the per capita consumption is 39.8 kg.
2. Clothing and Footwear
Americans purchase an average of 7.2 pairs of shoes annually, spending $240, and buy 75 pieces of clothing for $1,283.
In China, the average annual expenditure on clothing and footwear is about 1,000 RMB (equivalent to $142), which is only 9.3% of the U.S. figure.
Chinese consumers buy an average of 2.87 pairs of shoes per year, just 40% of the amount purchased by Americans.
3. Automobile Consumption and Ownership
In 2023, the per capita automobile expenditure in the United States is $2,255, while in China it is only $489, representing 22% of the U.S. figure.
The average price of a car is $49,468 in the U.S. and $22,935 in China.
The car ownership rate is 81 vehicles per 100 people in the U.S., compared to just 25 in China, which is 30.8% of the U.S. rate.
4. Outbound Tourism
In 2023, the United States recorded 98.5 million outbound trips, accounting for 29% of its total population.
China (including Hong Kong and Macau) had 87 million outbound trips, which is 6.2% of its total population.
Americans travel abroad 4.67 times more frequently than the Chinese.
3. Share of Consumption in GDP
Consumption has consistently accounted for about 70% of the U.S. GDP.
In contrast, China's consumption share has remained around 35% for a long time.
4. Analysis of the Gap in Service Consumption Capacity and Its Causes
According to Anbang's perspective, a high level of service consumption does not indicate 'weakness'; rather, it is an important sign of a healthy modern economy.
The low share of service consumption in China is primarily due to insufficient income and consumption capacity among the populace.
Additionally, the low quality and insufficient supply of services in China have also suppressed consumer willingness.
5. Conclusion and Recommendations
One of the key reasons for the insufficient momentum of China's economic growth is the weak consumption capacity of the public, which stems from the overall low income level. In the future, it is essential to firmly promote the adjustment and optimisation of the national income structure to enhance public income, which is crucial for driving the transformation and upgrading of China's economy.
Zhao Xiao commented: Where has all the money in China gone? This is the most critical issue regarding consumption! Slogans cannot replace purchasing power, and subsidies cannot substitute for income. Without reforms to the 'wallet', there will be no miracle of 'consumption power'.
(Source: 'Yunshang Canaan')
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