Chinese Are Hesitating on Spending despite Covid Control Being Lifted

Most Chinese people, more than 90% of the surveyed, are avoiding going out and around 60% are concerned that it is uncomfortable going out into the public for the next few months despite a relaxation of Covid-related restrictions.

After months of increasingly strictest measures to control Covid-19 outbreaks, China abruptly ended its restrictions in early December, at the same time infections started to surge in Beijing and other cities later.

Kenneth Chow, principal, Oliver Wyman said that many high streets and shopping malls were deserted in December and according to many businesses that the firm has spoken with expressed concerns over labor shortage as a significant portion of their staff have been off sick, and some are struggling to maintain their service level.

Many people went out to malls and attractions in Beijing over the weekend, but not all stores had reopened yet. The venues were mostly crowded but not as crowded as pre-pandemic level.

The study indicated that 62% of locals are interested in saving rather than spending or investing. The figure was up from 58% earlier this year. 

Oliver Wyman said, people who did plan to spend more were most focused in doing so in education and healthcare.