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China economy
OpinionComment
Chiu-Ti Jansen
Chiu-Ti Jansen

Opinion | How much economic pain can China tolerate in the trade war? Donald Trump is about to find out

  • A buying frenzy over pork in Shanghai might be a sign of economic trouble or an after-effect of the swine flu epidemic. Either way, it raises questions about the Chinese people’s capacity for withstanding the fallout from the US trade war

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Chiu-Ti Jansen
On August 27, American hypermarket chain Costco opened its first China store in Shanghai, but had to shut early due to “safety considerations”, after eager shoppers crowded aisles and worked themselves into a frenzy over heavily discounted Mao-tai, nuts, croissants – and cuts of pork.
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Pork is a staple food in China and a key indicator of food price inflation. Worryingly, pork prices have risen to new highs in recent weeks.

On August 20, the government of Putian city in Fujian province announced a subsidy of 4 yuan (US$0.56) per kg of pork; under the programme, locals with valid identity cards would be able to buy up to 2kg of pork. Yet, instead of assuring the public, the announcement fed anxiety among Chinese about returning to the days of meat coupons (which were introduced in the 1950s and only phased out in the 1990s).

While such fears are overblown, if there is such a thing as a national psyche, I am sure pork is embedded in China’s. This is a country where a full-page feature on President Xi Jinping’s recent visit to Gansu province and his love for the Chinese populace mentions his understanding of ordinary people’s deep longing to “eat meat”.

The Costco phenomenon and runaway pork prices have renewed debate about China’s consumption. Xinhua has rhapsodised about the opening of the hypermarket in Shanghai, saying it “reflects the vitality of the Chinese consumer market”.

Global Times , in an op-ed article headlined “Costco’s opening in China defies US attempts at decoupling”, praises the US retailer for defying President Donald Trump’s order to leave China.

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