Beijing Rejects G20 Consumption Call as China Home Prices Erase 85% of 2012-2021 Gains
Updated
Updated · CNBC · Sep 7
Beijing Rejects G20 Consumption Call as China Home Prices Erase 85% of 2012-2021 Gains
3 articles · Updated · CNBC · Sep 7
Summary
Beijing opposed a G20 statement urging China to remove distortions constraining domestic consumption, standing alone as the bloc’s only dissenter and drawing criticism from U.S. Treasury Secretary Scott Bessent.
An 85% wipeout of housing gains since the 2021 peak helps explain the resistance: Macquarie said property values have fallen back to 2016 levels, undermining household wealth and keeping consumers cautious.
Disposable-income growth in Chinese cities has slowed to 4.3% in 2025 from the roughly 10% annual pace common before 2020, leaving retail spending weak even as households prioritize education, healthcare and travel.
Exports have stayed strong despite U.S. and EU tariffs, with June posting the sharpest growth since 2021 and imports rising at their fastest pace in five years, yet the trade surplus remains wide.
That imbalance is drawing wider scrutiny because China’s economy still makes far more goods than it buys, while officials and advisers say efforts to lift domestic demand may take years to show results.