China Shifts to 'Rent, Not Buy' Model Amid Weak Domestic Demand

China's trend towards renting goods rather than buying is rising, as highlighted by the People's Daily. This shift is part of a strategy to boost domestic consumption amid economic challenges, despite government data indicating a slowdown. Economists urge policies to better stimulate consumer spending.

China is witnessing a shift in consumer behavior as more people choose to rent items like cameras and handbags instead of buying them, according to the official People's Daily. This trend is seen as providing new economic opportunities, despite government data indicating a different scenario.

The 'rent, not buy' model is gaining traction, with internet platforms offering rental deals such as drones for just 1 yuan a day compared to a purchase price of over 5,000 yuan. This has invigorated the world's second-largest economy, albeit amid dwindling domestic demand and a cautious consumer base.

Despite media optimism, official statistics showed only a modest 3.5% growth in retail sales over the year. To encourage spending, China introduced a trade-in program offering subsidies on the exchange of old goods, which officials claim surpassed 1 trillion yuan in sales. Experts call for more consumer-focused policies as the Communist Party aims to enhance consumption and expand domestic demand.

(With inputs from agencies.)