The latest data released by the National Bureau of Statistics of the Chinese Communist regime on December 15th shows that the situation in China’s consumption, investment, and real estate markets continues to deteriorate, with a focus on insufficient domestic demand. Official media outlets have once again brought up statements made by the Communist Party leader, Xi Jinping, ten years ago regarding “supporting consumption,” which has been criticized as an attempt by Xi to shift blame. This highlights that Xi’s statements over the past decade have been empty rhetoric and futile actions.
According to data from the National Bureau of Statistics of the Chinese Communist regime, the total retail sales of consumer goods in November increased by 1.3% year-on-year, lower than the 2.9% in October, marking the worst performance since the end of lockdowns due to the pandemic. Industrial added value in November saw a year-on-year increase of 4.8%, lower than the 4.9% growth in October. Fixed asset investment decreased by 2.6% year-on-year from January to November, a larger decline compared to the 1.7% decrease from January to October. National real estate development investment from January to November fell by 15.9% year-on-year, exceeding the 14.7% decline in October. The average housing prices in 70 major cities dropped by 2.8% year-on-year in November, compared to a 2.6% decline in October.
As of November, the year-on-year growth rate of total retail sales of consumer goods, a key indicator of consumer spending, has slowed for the sixth consecutive month. Chinese residents’ consumption accounts for approximately 40% of GDP, significantly lower than the level of over 60% in developed countries.
During the Central Economic Work Conference held last week, the Chinese Communist officials stated that they would vigorously boost consumption and increase residents’ incomes.
American economist David Huang told Epoch Times that the problems in the Chinese economy include insufficient consumer and resident spending, tight local finances with significant debt pressure in the real estate and local sectors, and the contradiction between massive deflationary pressure and fiscal stimulus policies. However, these fundamental issues are merely symptoms, as the real problem lies in the economic structure being dominated by state-owned enterprises and the continuous trend of “state advances, private retreat.” History has shown that such a scenario is unlikely to lead to sustainable economic development and lacks economic vitality.
In the draft summary of the 2025 Central Economic Work Conference, the top priority listed is “adhering to domestic demand as the mainstay and building a strong domestic market.” However, in the recommendations for the “14th Five-Year Plan” of the Fourth Plenum, the Chinese Communist authorities still prioritize high-end technology, advanced manufacturing, and other sectors as the primary focus for China’s economic development over the next five years.
Huang noted that the Chinese Communist regime openly acknowledges the insufficient domestic demand and supply-demand imbalance and may emphasize the reliance on fiscal stimulus on the policy level, along with employing some monetary tools for so-called “active fiscal policies” to stabilize investment and promote consumption. However, the authorities continue to adhere to the traditional economic model of promoting production, investment, and industry policies without addressing issues such as high tax burdens, inadequate social security, and low management efficiency. They have failed to grasp the core issues facing the Chinese economy.
Professor Qiu Wanjun from Northeastern University in Boston, USA, previously told Epoch Times that China’s political system dictates a long-term economic growth strategy that prioritizes production over consumption, creating an inherent dilemma.
The National Bureau of Statistics of the Chinese Communist regime also reported that the urban survey unemployment rate in November remained at 5.1%, unchanged from October. Data also shows that the average urban survey unemployment rate for the first 11 months of this year was 5.2%.
Huang mentioned that the method of survey unemployment rate in Chinese cities is conducted through questionnaires during working hours, meaning those who are not employed are not on the streets during normal work hours. Therefore, this survey may not accurately reflect the current unemployment situation and may not provide significant reference value. As deflation intensifies, the actual unemployment rate is likely to remain high.
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