Young Chinese consumers are spending to feel good amid slower economic growth

HONG KONG — Young people in China may not be buying cars or houses, but there’s always money for milk tea and toys

HONG KONG — Young people in China may not be buying cars or houses, but there’s always money for milk tea and toys.

It’s a challenging time to be a young person in China: The world’s second-biggest economy is growing far slower than it was when their parents were their age, with the U.S.-China trade war threatening to further weigh on growth. Competition for jobs is cutthroat and monthly youth unemployment stands at about 15% on average, with Chinese universities churning out a record 12.22 million new graduates this year.

Feeling “besieged” in life in the face of these economic obstacles, young Chinese consumers at home and abroad are finding comfort in smaller purchases.

“I spend to make myself happy,” said Kitty Lu, a 23-year-old Chinese student in Melbourne, Australia. “It sounds a bit reckless, but I do have a number in my mind.”

Lu said most of her spending goes toward supporting celebrities she likes. Occasionally, she allows herself a “small indulgence” in the form of “blind box” toys such as Disney dolls or the Labubu monster figurines that have become a global frenzy.