Singles Day has become an annual event. Originally aimed at lonely or isolated unmarrieds, this has become an annual splurge that confirms China’s change to an increasing consumer society. Alibaba extended the event – held on 11 November – to an 11 day marathon. Consumption is closing the gap on industrial production.
In a recent report Morgan Stanley has forecast that private consumption would replace exports and infrastructure investment as the main catalyst for growth in China in 2021. Goldman Sachs made the same prediction. Morgan Stanley went one further and predicted that in 2025 Chinese per capita income would exceed $14,000.
Consumer demand attracts foreign investment at a time when China is opening and changing. Its development will always be under the control of the Party but increasingly the Party views China as ready to play a bigger part in the world economy. Does the world see the changes?