China's 'Rent, Not Buy' Revolution: A Boost to Economic Trends

China's shift from buying to renting items, driven by cautious consumer behavior, is revitalizing its economy. Despite official data showing subdued retail growth, the 'rent, not buy' trend offers new consumption avenues. The government aims to boost domestic demand amidst low consumer confidence.

In a notable shift, China's consumers are increasingly opting to rent rather than buy, a trend that is invigorating its economy despite official data portraying a muted retail landscape. The People's Daily reported this consumer behavior shift has emerged as a fresh economic driver even as government statistics highlight a slowdown.

This growing preference for the 'rent, not buy' model, which includes renting items like cameras and handbags via online platforms, is seen as a new economic perspective, particularly amid weakened domestic spending. For instance, consumers can rent a drone for as little as 1 yuan per day, significantly less than purchasing it outright.

Despite the sluggish retail sales growth of 3.5% from January to November, this rental boom is part of efforts to revive consumption in the world's second-largest economy. Economists urge a more consumer-centric policy shift, highlighting the need for substantial boosts in domestic demand.

(With inputs from agencies.)