While exports have performed better than expected, with China's export industry concluding 2025 with a record surplus, things look even bleaker on the domestic market.
The economy has been plagued by years of property crises, low consumption and declining investments. The Chinese government has repeatedly presented various measures to boost consumption in the country, but without much success.
For many Chinese people, these have been tough years.
"It feels worse this year than last year. The economy is bad and it's getting harder to make money," says Liu Zhiquan, who is taking the train home to celebrate the biggest holiday of the year, the AP news agency reports.
Billions of trips
Despite tough times, travel during the celebrations is expected to reach a new record high. New Year's is a family holiday and for many it is the only time of the year that they can return to their hometown to see family and relatives. The country's authorities expect that more than 9.5 billion trips will be made during a period of 40 days.
The Communist Party hopes the country's big holiday, also a major consumer holiday, will get people to open their wallets.
Ahead of the New Year celebrations, authorities have announced that they will distribute checks and various types of discounts worth over two billion kronor to get people to start shopping more, the AP writes.
A boost for luxury?
The luxury market is also hoping that the year of the horse, which in the Chinese zodiac is considered to symbolize success and progress, will make some kind of comeback.
Demand for expensive bags, jewelry and clothing has fallen sharply in China in recent years. After the market fell by almost 20 percent in 2024, the drop was not as large last year, around 5 percent. Consulting firm Bain & Co sees some recovery for 2026, although much is still uncertain.
"The market will be boosted by domestic political support and geopolitical factors, which will bring luxury consumption back to the mainland," a recently published forecast states.
