{"id":6577,"date":"2025-04-10T02:11:20","date_gmt":"2025-04-10T02:11:20","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/6577\/"},"modified":"2025-04-10T02:11:20","modified_gmt":"2025-04-10T02:11:20","slug":"why-china-is-struggling-to-convince-consumers-to-borrow-im-not-attracted","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/6577\/","title":{"rendered":"Why China is struggling to convince consumers to borrow: \u2018I\u2019m not attracted\u2019"},"content":{"rendered":"<p>China has launched a series of policies aimed at boosting domestic consumption in recent months as officials look to shore up the economy amid an intensifying trade war with the United States. This miniseries examines whether those efforts are paying off, with the second story exploring China\u2019s moves to ease credit restrictions. The first story can be read <a target=\"_self\" class=\"e1yy41x40 ef9u0v01 css-1ankfgb ecgc78b0\" href=\"https:\/\/www.scmp.com\/economy\/china-economy\/article\/3305099\/chinas-consumers-are-finally-starting-spend-again-will-it-last?module=top_story&amp;pgtype=section?module=inline&amp;pgtype=article\" data-qa=\"BaseLink-renderAnchor-StyledAnchor\" rel=\"noopener\">here<\/a>.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">Eric Liu, who works a white-collar job in Shanghai, is no stranger to consumer loans. The 30-year-old is currently paying in instalments for an iPhone 16 Pro, and previously used a similar plan to buy another smartphone for his family.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">However, Liu is only willing to borrow if the lender offers interest-free terms. So, when he heard a week ago that Chinese banks were making it easier to take out consumer loans by raising limits and extending repayment periods, he was unmoved.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">\u201cI\u2019m not attracted because of the interest burden,\u201d he said. \u201cI wouldn\u2019t take out a loan just to make a large purchase.\u201d<\/p>\n<p>Many Chinese consumers share Liu\u2019s cautious attitude towards spending amid the current economic slowdown, which could pose a problem for Beijing as it <a target=\"_self\" class=\"e1yy41x40 ef9u0v01 css-1ankfgb ecgc78b0\" href=\"https:\/\/www.scmp.com\/economy\/china-economy\/article\/3302645\/chinas-latest-plan-boost-consumption-most-comprehensive-1970s?module=inline&amp;pgtype=article\" data-qa=\"BaseLink-renderAnchor-StyledAnchor\" rel=\"noopener\">tries to stimulate consumption<\/a> by relaxing consumer finance policies.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">Earlier this month, China\u2019s financial regulators announced an easing of its restrictions on consumer loans, raising the maximum loan from 300,000 yuan (US$41,300) to 500,000 yuan and extending repayment periods from five years to seven.<\/p>\n","protected":false},"excerpt":{"rendered":"China has launched a series of policies aimed at boosting domestic consumption in recent months as officials look&hellip;\n","protected":false},"author":2,"featured_media":6578,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3090],"tags":[3806,3800,3801,51,1395,3804,3235,3802,1700,3803,3811,3812,3805,3809,3807,16,15,3808,3810],"class_list":{"0":"post-6577","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-alice-wang","9":"tag-bank-of-beijing","10":"tag-beijing","11":"tag-business","12":"tag-china","13":"tag-china-international-capital-corporation","14":"tag-consumer-loans","15":"tag-economic-slowdown","16":"tag-economy","17":"tag-interest-free","18":"tag-jiaxing","19":"tag-lin-xiaojing","20":"tag-mortgage-repayments","21":"tag-smartphone","22":"tag-trade-in-programmes","23":"tag-uk","24":"tag-united-kingdom","25":"tag-white-collar-job","26":"tag-zhejiang-tailong-commercial-bank"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114311245502417191","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/6577","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=6577"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/6577\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/6578"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=6577"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=6577"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=6577"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}