WASHINGTON — The Chinese economy is supposedly in recovery mode, but the country’s biggest retailers are doubting the government data and has analysts worried that it could revert to a recession.
Reuters reported that consumers were not going out in droves and buying at major Chinese retailers, and retailers are not selling as much as predicted.
Belle International Holdings, a leading footwear retailer, was quoted as saying:
“The reality behind the numbers is gloomier…There are uncertainties in future prospects as the economy is struggling with a difficult transition involving structural rebalancing and revamping the growth model…”
“…As a defensive reaction, consumers are becoming more inclined to save and less willing to spend”
Official government data has always been sketchy in the eyes of consumers and companies in China, and the skepticism of retailers right now shows that the Chinese Communist government may be fudging the numbers.
Some worry that if China, which has struggled economically the last two years, could continue to falter that the U.S. and the world will follow. China holds a majority of U.S. debt and worries some Americans of the future ramifications of this control over America’s future.