China's policymakers must assess and accommodate a dramatic shift in consumption patterns to effectively incentivise spending – a task that becomes more crucial as pressures to stimulate economic activity grow – a Beijing-based think tank has said.
"The government's approaches to boost consumption have failed to accurately capture the shifts in consumer behaviour observed in certain sectors," said public policy consultancy Anbound in a report published Sunday. Chinese consumers, the report said, are more inclined to make spending decisions based on factors like quality, self-development and pleasure as budgets become more "subdued".
The comments came as China's consumption continues to weaken despite a raft of policies designed to buoy spending. Consumers, haunted by cloudy economic prospects and reduced incomes, have grown increasingly cautious about parting with their hard-earned money.
