Paradox of the China consumer: Optimistic, but won’t spend

To understand the Chinese economy today, you have to hold two opposing truths in your mind at once: consumers remain hesitant to spend despite Beijing’s efforts to coax them into opening their wallets; yet they are also remarkably hopeful about the future. This duality – cautious today, confident about tomorrow – may sound contradictory. But the two can, and do, coexist. The government’s attempts to boost consumption have had limited effect, in large part because consumer confidence – at least in the near term – is still fragile. In turn, this hesitation to spend keeps domestic demand muted and drags…