Visitors bustling at the auto show in Beijing recently is a positive signal for China when the world bogged down in recession.
In early March 2020, the world’s leading auto show in Geneva was canceled. Later, when Covid-19 spread globally, a series of other exhibitions in Detroit, Los Angeles, New York, Paris and São Paulo were not held either.
So, after a long pause, the first major auto show since the pandemic opened last weekend in Beijing, giving manufacturers the opportunity to introduce new models and ideas. Big idea for the future.
Under the bright lights, CEOs and car lovers saw new products from both the West (like Ford or Volkswagen) and Chinese rivals. SUVs, sedans and other cars are targeting Chinese consumers who have surpassed the Covid-19 and are eager to spend.
Automakers are chasing people like Ben Cao. Cao – a 33-year-old consultant in Shanghai and his wife bought a dark blue Porsche Panamera sedan in May to replace the Range Rover Sport. Later, he bought a light gray Porsche Cayenne in July to replace the Audi TT Roadster. When the theaters reopened in the summer, Cao’s family also went to see popular dramas like “Tenet” and “Eight Hundred”.
A few days ago, when buying a new ring for his wife at a high-end jewelry store, Cao realized that many people had similar needs. “Some extremely expensive pieces of jewelry are out of stock,” he said.
China saw negative growth in the first quarter of 2020. This is the first quarter of decline in the modern era. But then the country grew again. Factories supply the world with goods. The government lends strongly to large infrastructure projects. China’s third quarter GDP is expected to accelerate, though the rest of the world is sluggish.
The rebound in spending started with the rich and spread to middle-class families. Even so, many low-income workers are still facing difficulties. Last month’s retail sales rose 0.5% over the same period in 2019, the first increase this year. Xibei, a mid-range restaurant chain across the country that had almost no customers earlier this year, now records sales from September 18 to 24, up 4.5 percent from the same period last year.