In the US, the latest batch of data, released this week, showed retail sales climbed in December for the sixth straight month - though they missed expectations, with growth slowing to 0.3% MoM.
With the personal savings rate at a 10 year low, the US consumer is now fully tapped out: This latest uptick in spending has presumably been fueled by debt, as credit-card borrowing has reached an all-time high.
But another milestone in the history of global consumerism passed last month: As the Washington Post points out, China tied the US in 2018 in terms of domestic retail sales - according to data compiled by Mizuho.
In some important categories, China has overtaken the US: With 17.6 million vehicles sold in the US in 2016, for example, but that was far below the 24 million passenger cars sold in China. US automakers account for about one out of every five cars sold in China, even though the communist party placed a 10% tax on luxury cars and trucks imported from the United States.
This economic heft has made the problem of confronting China intractable: China is now responsible for 20% of sales for some of the largest US corporations. This is making it difficult for Trump to confront Xi Jinping.
Any restrictions on Chinese access to the US market would be met with barriers to American companies selling in China.
"China is one of the most important markets for many U.S. multinational companies,” Shen says. “This should lend China immense bargaining power."
One area where there's a lot of agreement across the political spectrum is to go after China's theft of US intellectual property. Over the summer, Trump ordered an investigation by the US Trade Representative Robert Lighthizer to examine China’s IP policies. That investigation is ongoing, and could lead the US to file a WTO dispute. Unilateral actions might include duties or import restrictions.
As the new year begins, it’s likely consumer spending in China will quickly surpass that in the US as more newly minted middle class Chinese discover consumer electronics, cars and fashion.
Comments
They're just buying cheap Chinese shit.
edit: Can't tell who I'm talking about, can you?
top kek post, and will probably be underrated for how good the edit is. (or should be.)
but, sadly, I can tell who you're talking about o.0
because while China just caught up to the US for total retail sales, China long ago passed US luxury retail sales (and is now something like 40-50% higher than US' market share).
so it actually is obvious who is buying the most Made in China =p
In reply to They're just buying cheap… by tenpanhandle
Depends how you define "luxury" now don't it?
In reply to top kek post… by Laowei Gweilo
The Chinese will learn the true viciousness that the white race is capable of. Look at the history of the English and then make it more cunning. That's what they're up against. Reminds me of the third time I was arrested for pot possession. I was pushed hard by a weed hating cop into a caged truck during their swing through the CA park. One of my caged companions was a Republican state assemblyman arrested for soliciting. The other was Oprah, I believe, arrested for chanting Black Panther incitement at a street riot. 1971 or so. I got off on a technicality - the judge's 18yo son was dating my sister's 14yo daughter. The two hours in that truck with these egomaniac hypocrites was a worse a punishment sentence than grand auto theft.
In reply to Depends how you define … by TBT or not TBT
"even though the communist party placed a 10% tax on luxury cars and trucks imported from the United States."
Hey, what's the tax on luxury cars and trucks imported into the US? Oh, yeah, that's right. ZERO. Trump is right. All this "free trade" shit has to be redone.
In reply to The Chinese will learn the… by Baron von Bud
Not just Free Trade, but the Federal Reserve as well.
In reply to "even though the communist… by NoDebt
Obama handed China $$$TRILLIONS$$$$ in jobs.
In reply to Not just Free Trade, but the… by stizazz
Stop whining, muthafucka-snowflakes and do your FUCKING homework: US is not the target as US car makers are absolutely irrelevant in the Chinese luxury car segment.
"Analysts and carmakers said the higher tax rate would likely have only a limited impact on mainstream luxury brands such as Mercedes-Benz, Audi and BMW that dominate China's premium car market segment."
Problem (for the US) is that the US car makers keep on producing difficult-to-sell horse crap. Trump doesn't get it that most buyers on this planet don't like cars that look like they've been designed by Kim Kardashian (apart from being 10-20 years behind technology-wise).
Bonus question: Which car drives Bernie Sanders?
In reply to Obama handed China $$… by 847328_3527
America is helpless to do anything. China buys up all that paper that America prints just to stay above water, and they manufacture all the goods Americans want and need.
In reply to "even though the communist… by NoDebt
I wouldn't say "all that paper". They buy less all the time.
Their US Treasury holdings are dropping.
They are gonna pull the plug this year.
Oh the humanity.
In reply to America is helpless to do… by roddy6667
Considering that there are over 3 times as many people in China than the U.S. that means they aren't spending crap on a per capita basis. The sooner the Chinese wage rises the sooner China won't have an advantage over Western countries.
In reply to The Chinese will learn the… by Baron von Bud
That was going to be my comment.
Misleading title. Per capita counts.
In reply to Considering that there are… by IH8OBAMA
Wrong. It only takes $9600 a year household income to duplicate an American middle class lifestyle in China. They are spending a LOT more than Americans, per capita.
In reply to That was going to be my… by Bigly
Yup. What happened to the unexplained explosions of football fields of unsold gm cars Tyler?
In reply to That was going to be my… by Bigly
china is trying to domesticate their economy. for a domesticated economy a strong currency is advantageous.
In reply to Considering that there are… by IH8OBAMA
China-- 1.4 billion
US -- 325 million
China has appox 4x the population of the U.S.
Source http://www.worldometers.info/world-population/china-population/
5.8 trillion divided by 1.4 billion is about $4142.85 per person if divided equally but there are tens on millions living in abject poverty with no income so the wealth spending is disproportionate. But still, spending a mere 4k per person per year still indicates a very widespread level of poverty as we Americans define it.
Of course, Americans by the same math indicates a 17k per year spending and again, the spending is not equal among Americans.
In reply to Considering that there are… by IH8OBAMA
Chinese, or asians in general like to save most of their earnings. The ones that spend are millionaires.
In reply to China-- 1.4 billion… by privateparts501
yes and yes =p
first yes, insofar that most "luxury" is shit =p
second yes, being that I think if you loosely define all luxury retailers (e.g. the Nordstroms) and include their lower-end brands (e.g. the stuff that has a lot 'Made in China'/Indonesia/or at least Portugal, such as the Ralph Laurens and Coachs and the secondary 'mall' brands such as AX or McQ), rather than defining 'luxury' as just the pure fashion houses (the Chanels and Pradas) or shit that costs five digits (the Hublots and Hermes), then yeah I think the US may still have higher spending. I think most metrics that show China long passed US in 'luxury' when defining 'luxury' as more high-end [price wise ... as to avoid the 'quality' or 'value' discussion that probably doesn't need to be discussed on ZH heheheh].
so I would agree the definition matters, both cynically and critically ^_^
In reply to Depends how you define … by TBT or not TBT
Yeah, milk powder that wont kill your baby, you know, shit like that.
In reply to Depends how you define … by TBT or not TBT
Heard a french company just recalled million of baby milk because it was contaminated with salmonella.
In reply to Yeah, milk powder that wont… by Zero Point
USSAN treasury toilet paper debt to allow the whores in Washing town and the thugs at Pentacon to keep on living beyond their means.
In reply to Depends how you define … by TBT or not TBT
At least the Chinese buy what they produce at home. Can't say that for the good old US of A.
In reply to top kek post… by Laowei Gweilo
I bought a lot of American pussy this year...
In reply to At least the Chinese buy… by stizazz
Dont say that or the government will want to estimate it annually and include it in GDP
In reply to I bought a lot of American… by 1stepcloser
We used to buy what we produced at home also, kept the money locally and circulating locally.
In reply to At least the Chinese buy… by stizazz
Do bailed-out US automakers make the luxury cars that China imposes a tarif on in America?
In reply to top kek post… by Laowei Gweilo
You're talking "they". Everyone here knows who that (((is))).
In reply to They're just buying cheap… by tenpanhandle
Small difference. Chinese pay cash and mericans pay with credit.
In reply to They're just buying cheap… by tenpanhandle
Jiantgnan's uses lawn mower engines that sell for <$4000
In reply to They're just buying cheap… by tenpanhandle
We the people have way better orgasms.
good for them. we have done well trading debt for cheap plastic goods with our communist friends. Nixon did a great job tearing down the wall.
forward NWO!
The communist and one worlders have successfully broken the back of the "American Dream" for the "Chinese Dream". This with the success of "Open Borders" and the Homosexual Rampage destroying American culture and values.
The Democratic Communist Party is openly calling for a race war and homosexuals and communist working in media and the government are inciting extreme violence against white Americans.
While over 200,000 Chinese intelligence agents clean the US out of all technology and work on campus to be a part of the political disruption and cultural destruction of our nation.
good.
dissolve all national borders. erode all currency.
forward
In reply to The communist and one… by MK ULTRA Alpha
Welfare for all? That sounds great. Everyone go back to your shit hole and collect your welfare there! No need to come to the US.
In reply to good… by hoist the bs flag
US is a socialist republic. Banks get bailed out, corporations get bailed out, you have military, parks, roads, hospitals, ports, airports, rail roads, subways, traffic lights, ferries,schools, universities, police, fire department, ambulance, welfare, social security. Where do you think that comes from? Other peoples money. Merica is bankrupt, some are just playing along, others are re-positioning themselves. Hint: China, Russia, Pakistan, India, Brazil etc.
Merica is joining the club of other shit holes, only difference is, merica is doing it to themselves b/c spent too much money creating the other shit holes. Seppuku
In reply to Welfare for all? That… by Xena fobe
The average ZH'er here ranting about Commies this and Socialists that is using or getting benefits from "military, parks, roads, hospitals, ports, airports, rail roads, subways, traffic lights, ferries,schools, universities, police, fire department, ambulance, welfare, social security". It never occurs to them that this is socialism.
Cat.Kettle.Black.
In reply to US is a socialist republic… by Justin Case
GADZOOKS! You're on fire here tonite Ultra!
The master plan of societal change (aka - societal collapse) which has been ongoing for nearly 50 years now... is a project of talmudic kabbalism, by which to denude the western peoples of all natural defenses, and then devour their territories as part of a global 'new jerusalem' - new world ordure.
Technology transfer is certainly part of that - as is the transfer of intellectual and financial power. But tis not really for the benefit of the Chinese - who are merely the selected dogsbodies of the power shift dynamic. They look up to and admire the kabbalists as being 'good at getting rich'... and will eventually suffer the same belated wake up to the end result of having that international finance capital creature embedded in their midst.
Those who imagine themselves cheering for China and the rest of the fictional Brics gang are cheering instead for their own destruction at the hands of enemies whose culture war upon the west can be fairly said to have now suceeded in all respects. Outta the fire... into the pan.
In reply to The communist and one… by MK ULTRA Alpha
And the Fabian ((Agent)) Mayor of London , is willing to help . https://youtu.be/C2tMfOIbJ34
In reply to GADZOOKS! You're on fire… by BobEore
"cough, cough, hack, hack, cough"
The Chinks get away with this BS because they peg their currency to the dollar.
Bretton Woods masters MADE them peg it to the dollar. with the threat of bullets and bombs
fixed it for you
In reply to The Chinks get away with… by Juggernaut x2
There is no bigger manipulator of currency than the empire themselves, and everything financial.
With all aspects America is the epicenter of world public and private corruption and gangsterism - a kleptocracy run by criminals complicit with corporate crooks, headquartered on Wall Street, profiting at the public’s expense.
Monied interests transformed the nation into an unprecedented money making racket, scamming ordinary people of their savings, jobs, homes and futures so privileged elites can get richer and more powerful.
From inception, the business of America has always been business - meaning license to pillage, defraud and benefit extra legally, including tax avoidance more than anywhere else worldwide, encouraging high-net-worth foreign individuals to shift funds to the US free from taxation.
Government of, by, and for its privileged few allows grand theft on an unprecedented scale. Markets are manipulated up or down for profit, scamming the unwary.
Authorities permitted the greatest ever wealth shift from ordinary people to its rich and powerful, the grandest of grand theft, facilitated by Fed controlled money, credit and debt - Wall Street owned and operated.
America’s dark legacy is largely concealed from view. Enormous wealth is hidden in tax havens or investments at home and abroad, free from taxation.
Wall Street banks and other giant US financial institutions are at the center of unprecedented criminality, aided by government co-conspirators.
In reply to The Chinks get away with… by Juggernaut x2
.
Anecdotal stories aren't supposed to be fiction.
In reply to The Chinese will learn the… by Baron von Bud
They took a page from the American playbook and created some Real Estate Bubbles. Does the Fed fight inflation because they are scared of higher prices for consumers, or lower prices for real estate?
Perhaps this is a time for the NATO "allies" to step up to the plate and help the USA out with this. Because a trade war will be as serious as a hot war, even very likely leading up to it. Thus it is time to show their real colours!
PS! I am sure the response would be very dissapointing, as most of the NATO "allies" are kucks that are in on the scheme.
I say it is time to kick some London inc. ass, along with "her majesty" the dragon and her red haired upcoming prince of darkness. Kick in the doors at the vatican and the swiss templar nights while at it. Have a good one!
Gooble gobble, one of us!
Gooble gobble, one of us!
Hi what's what.
In reply to Gooble gobble, one of us!… by whatswhat1@yahoo.com
Which IP has America developed exactly?
In reality most good ideas came from other parts of the world, even the US space program stole its ideas from Hitler!
Thats to be expected.
The Chinese work very hard, they are very persistent, they have a good attitude, they have a good work ethic.
Americans have turned into a bunch of whining, complaining, lazy, conspiratorial, paranoid, backstabbing, arrogant, losers.
You can't win when you think like a loser.
Spending our last 40 billion on a wall is symbolic.
It will be a monument to your stupidity, a pathetic attempt to keep out people trying to sneak in to do the work you are too lazy to do. You will be paying them to build a wall to keep them from doing the work that you are too useless to do yourself.
Pagination