China Economy

While Americans face inflation, China grapples with deflation and economic slowdown. This sentiment is mirrored in the popularity of a “crying horse” toy, reflecting societal stress. Additionally, the “Are You Dead?” app, designed for those living alone, saw rapid growth before being removed by Chinese authorities for “public order and good morals.” These trends, alongside declining marriage rates and rising single-person households, highlight underlying anxieties amidst China’s demographic shifts and economic uncertainties.

Beijing is launching a program offering interest subsidies on individual consumer loans from September 2025 to August 2026. The subsidies, capped at ¥50,000 per transaction, target purchases in sectors like automobiles, elder care, education, tourism, home improvement, electronics, and healthcare. Borrowers can receive an annual 1% interest subsidy, up to 50% of the loan’s interest rate. Individuals are eligible for a cumulative subsidy of ¥3,000 per lending institution. The initiative aims to boost domestic consumption, sparking debate about consumer financing choices.