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China’s Holiday Consumption Withstands Travel Restrictions

  • Cinema and e-commerce see strong growth during New Year break
  • Travel falls sharply after restrictions imposed to curb virus
Sales of luxury goods in China have been stronger than mass-market products since the pandemic, reflecting restrictions on overseas travel and a stronger recovery in wages for high-earners. 

Sales of luxury goods in China have been stronger than mass-market products since the pandemic, reflecting restrictions on overseas travel and a stronger recovery in wages for high-earners. 

Photographer: Qilai Shen/Bloomberg

Chinese consumers splurged on restaurants, online sales and movies over the Lunar New Year holiday as travel restrictions made it difficult for many of them to make their annual trips home.

Sales at “key” retailers and restaurants during the week-long holiday amounted to 821 billion yuan ($127 billion), an increase of 4.9% from 2019 and up 28.7% from last year, when the economy was in lockdown, according to figures from the Ministry of Commerce.