China’s luxury sector is in decline, with an increasing number of wealthy people selling their designer handbags or watches for extra cash.
China observer Xia Yifan told The Epoch Times on Aug. 5 that Chinese consumers, including the wealthy, are reluctant to buy luxury items because they don’t have enough money and even have to sell their luxury goods to maintain their living standards.
Overall, economic depression and the impact of repeated “zero-COVID” measures have slowed growth in many cities across China, he said.
Economic Slowdown
“Small and medium-sized enterprises are closing down one after another, while local governments are indifferent to it,” said Xia. He added that for Communist Party officials, carrying out Beijing’s political orders may be more important than focusing on people’s livelihoods and the economy, not to mention their inability to solve the problem.
Due to the lack of financial security, many Chinese are pessimistic and are looking for their way out, with some planning to emigrate to foreign countries and others disposing of their assets so they have more cash on hand, Xia said.