China: Saving and hoping for the future

"Even if we're just walking, we're faster than others." Sun laughs mischievously as he uses this image to describe the state of the Chinese economy compared to its competitors.

The businessman himself is doing well. His wealth is based on selling real estate in China . However, he does not want to be quoted by his full name because his business is currently doing poorly. There are many vacant properties, and the apartments are too expensive.

What's next? Sun shrugs. It'll be fine. The man in his fifties is hoping for signals from the government .

Summer Davos in China

Chinese Prime Minister Li Qiang is as optimistic as ever. He is speaking in Tianjin at the "Summer Davos 2025," organized by the Swiss World Economic Forum.

1,700 participants from all over the world have traveled to the port city and are listening with hope. Economic growth of 5.5 percent in the first quarter of this year. The second quarter also looks good, says the Chinese Premier.

Saving instead of fun

But many Chinese view the government's optimism with skepticism. They prefer to save rather than spend their money. Walking through Tianjin's large shopping centers, one notices gapingly empty stores. Watches, jewelry, and expensive handbags—but demand is low.

Even at the hairdresser's, there's little activity on this normal weekday. There are four stylists, but not a single customer.

In the chicly designed stores of Chinese automakers, the salespeople are boredly playing with their cell phones. The latest "Nio," an electric car, of course, sits alone in the showroom. No one looks at the model or even wants to sit in it for a test drive.

The lack of Chinese consumer spending is hitting automakers particularly hard. Competition for market share is fierce, and prices are in some cases in free fall. New cars are being sold at used-car prices. This practice is called "zero mileage."

Dumping price offensives

"It's good for consumers; they get cars at very reduced prices, and they get very advanced, competitive cars. At the same time, however, companies' profit margins are being eroded," analyzes Killian Aviles, Head of Asia Pacific for the German Dekra Group, which still does good business in China with testing and consulting services related to the automotive industry.

Consolidation is inevitable, and Aviles isn't the only one convinced of this. "Only the strongest and healthiest will survive," he says.

Increased exports of cars, for example to Europe, could ease tensions. Provided the Europeans allow these exports and do not further increase tariffs . On the other hand, the Chinese economy's strong export orientation to date is not a viable model for the future.

Export is no longer a model for the future

"China has recognized that the era of export-oriented growth is over. And of course, the country is still struggling with overinvestment and overproduction," says Diana Choyleva, Senior Fellow at the Center for China Analysis in London. Domestic consumption must pick up, the expert is convinced.

At the same time, China aims to become a global market leader in as many industries as possible. Visitors are proudly shown selected companies in the metropolis of Tianjin. The city is one of the world's five largest port cities and is focusing on robotics, among other things.

"Improving the world with robotics" is the slogan of the Siasun Robotic Factory. Its industrial robots are sold in 40 countries around the world. Their product range also includes robots for the nuclear industry.

However, the latest robot models aren't on display. Instead, there are standard machines, such as those found in the automotive industry. The growth potential is enormous, says the production manager. "Soon, the robots themselves will be building the robots," he enthuses.

"Where will the people be then?" The question remains unanswered.

Picnic instead of restaurant

On the banks of the Hai He River, which flows through Tianjin, Chinese tourists sit and enjoy their picnics. Families with children, the elderly, and many young people are there. Some are dancing in select spots.

But many restaurants are half-empty—too expensive. The Chinese prefer to save their money. Bringing food from home also tastes good.