China needs its youth to spend but they are embracing frugality


China is facing a number of economic challenges and its government wants the next generation of consumers to start spending more for the good of all, but it is not having much luck convincing them to do so.

Officials say insufficient domestic consumption across much of society is dragging on growth, but recent graduates have more reasons than most to be cautious.

Youth unemployment has been hovering at just under 20% for some time, those who have jobs fear they could lose them, and the ongoing property crisis can make the prospect of home ownership seem unreachable, especially in big cities.

Youth unemployment has been hovering at just under 20% for some time, those who have jobs fear they could lose them, and the ongoing property crisis can make the prospect of home ownership seem unreachable for many, especially in big cities.

This uncertainty is encouraging many of China’s youth to instead embrace frugality, and social media has been flooded with tips on how people can survive on small amounts of money.

“My work is dedicated to a minimalist way of life,” one full-time influencer tells the BBC.

Videos by the 24-year-old, who goes by the online name Zhang Small Grain of Rice, feature content like her using a bar of ordinary soap for all her personal cleaning requirements, rather than expensive skin cleansing products.

She can also be seen walking around shopping areas and showing off various bags and items of clothing which she says are good value because they’ll last longer.

Companies pay her to feature their goods to her 97,000 followers on the Xiaohongshu site.

“I hope more people will understand consumption traps so they can save. This will reduce their stress and relax them,” she said.

Others focus on budget eating.

A 29-year-old using the name Little Grass Floating In Beijing posts videos of himself preparing basic dishes. He says he can have two meals for a little over $1 (76p).

“I am just an ordinary person from the countryside. I have neither a good educational background nor a network of influential contacts, so I must work hard for a better life”, he tells his followers.

He works for an online sales firm and claims his extremely modest lifestyle has enabled him to save more than $180,000 over 6 years.

Some have asked him online if he would expect his future wife and children to live the same way and what the end goal is. His response: “I don’t know”.


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