Communist China’s Savings Reached 2.6 trillion, But Less Consumed Spending

The latest bank data from the Communist China shows that the savings in the country increased by a record high of RMB 2.6 trillion in 2022, according to media reports. The number seems tremendous, but only a fraction of the savings would be used for daily spending.

According to Chinese media, it is believed that spending will see a sharp increase because people want to spend as much as possible to compensate for the time in quarantine when they cannot go out shopping. However, the savings might not all be used for shopping. Analysts believe that the world could have a misguided opinion on Communist China’s domestic spending. Despite the Chinese government using every leverage to boost the economy, only around RMB 200 million of the savings might be used for spending. During the lockdown, Chinese families accumulated the largest amount of savings in one year, reaching RMB 2.6 trillion. Many of the savings are from high-risk assets such as real-estate markets and financial products, and some are putting more money in the bank simply due to uncertainty in the future.

Chinese consumers were widely expected to empty their wallets and unleash after the Chinese government suddenly announced the end of its “Zero-COVID” policy last December. Many economists have a negative view of this. They argue that most of the Chinese resident’s savings are not used for consumption. The Chinese Communist Party (CCP) treats Chinese people as slave resources that can be exploited and regenerated easily, however, Chinese people do not want to be treated as slaves. This will mean the end of the Communist regime.