China’s economy continues to decline, and with growing pessimism about future income and economic prospects, more and more Chinese are opting for “consumption downgrades.” Shanghai, with a permanent population of nearly 25 million, has prompted some netizens to sigh: “Have Shanghai residents stopped spending altogether?” A survey shows that 80 percent of Chinese acknowledge they have downgraded their consumption.
Blogger Nicole Wang once said in a video that she has a middle-class friend in Shanghai who owns two apartments in the city center and two more in Australia. Yet this friend has “downgraded” her spending habits to the point that she avoids buying anything over 30 yuan. Wang said her own situation is similar — despite owning several properties in Shanghai, she doesn’t dare to spend freely.
The video sparked widespread discussion online. Some netizens asked why someone with assets worth tens of millions would be reluctant to spend. Wang explained that without a steady and reliable source of income, it’s hard to justify lavish consumption.
“We’ve benefited from the boom of living in a big city. If we were in another city, our assets would never have grown this much. That’s why it makes sense for us to be so selective about spending. This wealth didn’t come from our own capabilities — we can’t really ‘manage’ these tens of millions. So, if work isn’t going well, the economy is down, or the business we relied on stops making money, we get anxious — sometimes we live in constant anxiety. It feels like this fortune has nothing to do with me. If I only make tens of thousands a month and suddenly can’t, or I might even be laid off, then I’d rather just buy cheaper things,” she said.
Another blogger shared that her best friend, who used to spend lavishly, has also started cutting back. She recalled a recent trip to Shanghai’s upscale Xintiandi Plaza to shop for sportswear.
Success
You are now signed up for our newsletter
Success
Check your email to complete sign up
“We walked into Under Armour, and she picked up a pair of shorts. I thought they were pretty ordinary, but when the cashier scanned the code — 699 yuan. In the past, she would’ve paid without a second thought. But this time, she refused right there, saying to the sales clerk, ‘This little bit of fabric for 699 yuan? Forget it.’ We walked out without buying them. She kept complaining that shorts are too expensive these days. I told her, ‘Finally, you’re learning to be frugal.’”
Later, her friend found the same shorts online for 395 yuan and bought them. When they arrived, she happily shared photos in their group chat.
A 25-year-old influencer nicknamed “Xiao Qi,” who works as a livestream shopping host in Shanghai, said she earns about 10,000 yuan a month but still tries to save. She proudly shared that her lunch that day cost just 2.5 yuan, encouraging her followers to try “consumption downgrading.”
“In this era, savings are our greatest security,” she said.
READ MORE:
- Reflections on the Falun Dafa Parade and Vigil in DC: A First-Person Perspective
- A Path of Freedom: A Shen Yun Dancer’s Journey From Oppression to the World Stage
- The Rich Aroma Forged Through Hardship — My Earliest Memory of Coffee
Living frugally becomes a trend
On August 4, another Shanghai blogger interviewed passersby on the street. One woman said she hadn’t bought luxury goods in years. “I used to buy a handbag every year — not anymore,” she said. When asked why, she explained, “Because salaries in my industry have been cut and my bank balance is shrinking.” She works as a nurse in a private hospital, but with the economy struggling, more people are turning to public hospitals covered by health insurance, leaving private hospitals with lower revenues.
Another young woman said her spending cuts have been “drastic.” She used to eat three meals a day, but has cut back to two — and now sometimes just 1.5. “I work at a state-owned enterprise. Every day I join the retirees for the 14-yuan vegetarian lunch at the canteen — it’s not enough to fill me up, so I call it ‘half a meal.’ If this keeps up, I’ll be down to one meal a day. Celebrities skip meals to lose weight — I do it because I’m broke.”
She also noted that many people have stopped taking the subway, opting for electric scooters instead. “The subway costs 8 yuan round-trip a day, but riding an e-bike is only 2 yuan every three days.”
Another woman said her spending has dropped sharply, especially on skincare. “I now spend only a tenth of what I used to. I’ve switched to baby products — I used to use L’Oréal, now I buy ‘Haidemei’ (Child’s Face) cream.” She added that she now prefers affordable domestic brands and even orders kids’ meals at restaurants to save money and control her weight.
This woman works in finance and said the change is due to uncertainty about her future income. “These days, keeping your job is already considered lucky. Promotions and raises are out of the question.”
A woman in the integrated circuit (IC) industry said her biggest cutback was on housing. “I used to live in Xuhui District, but I moved to Tangzhen. The rent is much cheaper, and the place is more spacious.”
Her wardrobe has also changed. “I used to dress more formally for work, but now I’m casual. As long as the clothes cost less than 200 yuan, I’m fine with it.”
Translation by Janet Huang
