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Retail sales are still rising, but record household savings, stepped-up gold buying and reined-in income expectations suggest the population of the world’s second largest economy is now prioritizing security over splurges — with consequences for global brands and investors

For years, global investors have waited for the Chinese consumer to return in force — to shop, to splurge and to rescue multinational earnings. Instead, what they’ve gotten is something far more puzzling: steady retail growth on the surface, paired with an extraordinary buildup of household savings underneath.

China’s retail sales topped 50 trillion yuan ($7.3 trillion) in 2025, according to official data, with total retail sales of consumer goods rising 3.7% on a year-over-year basis. That is not a picture of collapse. Restaurants are busy again. Domestic travel has rebounded. Electric-vehicle sales remain strong.