China’s consumers refuse to open their wallets. Is ‘luxury-phobia’ the problem?

South China Morning PostCenter-RightEN 1 min read 100% complete by Xinyi WuJanuary 20, 2026 at 08:00 AM

AI Summary

short article 1 min

A professor at Peking University, Su Jian, suggests that China's sluggish consumer spending is partly due to a widespread "luxury-phobia" among the population. This idea is presented amidst ongoing debate about reviving China's economy through consumption. Su argues that luxury consumption should be destigmatized and viewed as social progress. However, this contrasts with the government's recent austerity drive and crackdown on extravagant spending, particularly within the civil service. This has led officials and wealthy individuals to conceal their spending to avoid scrutiny, further hindering consumer activity. The government's actions against displays of wealth on social media have also contributed to this cautious consumer behavior.

Key Entities & Roles

Key Player Opposition Context

Chinese policy circles 50% Peking University 60% Chinese 70% Government ×270% Su Jian ×280% China ×3100%

Keywords

consumer spending 90% china 80% luxury goods 80% luxury-phobia 70% austerity drive 60% economic growth 60% retail sales 50% consumption 50% social progress 40%

Sentiment Analysis

Negative

Score: -0.20

Source Transparency

Source

South China Morning Post

Political Lean

Center-Right (0.50)

Far LeftCenterFar Right

Classification Confidence

90%

This article was automatically classified using rule-based analysis. The political bias score ranges from -1 (far left) to +1 (far right).

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consumer spending china luxury goods luxury-phobia austerity drive economic growth retail sales consumption social progress

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