Chinese families spend a far smaller slice of the economy than almost anyone else.

US
68%
UK
62%
Japan
55%
Germany
52%
China
38%

Household consumption as a share of GDP, selected economies. Percent.

Why this is happening

China's system pushes the nation's savings into factories, roads and property rather than into households.
With a thin safety net, families save hard for healthcare, education and old age instead of spending.
So the country builds far more than its own people can buy.

The take

An economy that cannot consume what it produces has to sell the surplus abroad. That single fact, low Chinese consumption, is the root of half the world's trade fights.

Source: World Bank, IMF (2026)