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China's Economy Struggles as Consumers Tighten Their Belts

Associated Press

   BEIJING - With home sales crashing, real estate agent Zhang Yonggang is
   tightening his belt, part of a plunge in Chinese consumer demand that
   is a bigger threat to economic growth than Beijing's tariff war with
   Washington.

   Zhang, who works in the central city of Taiyuan, said his office sold
   no apartments last month after Beijing tightened lending controls in
   July to rein in housing costs and debt. Zhang, 42 and married with a
   teenage son, said his income has fallen by half from a year ago.

   "I have no money to buy a home and no plans to change cars," Zhang
   said. "It is definitely the toughest time I've ever seen."

   Communist leaders are counting on consumers to power China's economy,
   replacing trade and investment. But shoppers, spooked by the tariff war
   and possible job losses, are cutting spending on cars, real estate and
   other big-ticket purchases.

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