China ushers in consumption boom ahead of Spring Festival

As Spring Festival approaches, Chinese consumers are flocking to malls and markets to snap up festive goods, from traditional foods to decorative items, driving up sales ahead of a holiday that's deeply rooted in Chinese culture and tradition.

To usher in the cherished festival, shopping malls in Guangzhou City of south China's Guangdong Province have been transformed into vibrant festive hubs, with elaborate decorations and exhibitions showcasing the city's rich cultural heritage.

"Customers can increase their knowledge of popular science while shopping and dining, which is also the development trend featuring multiple business models in the business circle," said Wang Yuqing, executive director of Guangdong Private Enterprise Chamber.

Meanwhile, a variety of consumer promotion activities, folk customs and subcultural activities have been introduced in major shopping malls across Shenzhen City of Guangdong Province, further fueling the growth of the cultural tourism market.

Recently, many customers in Ningbo City, east China's Zhejiang Province, have been busy with festival shopping and preparing New Year's gifts. A wide array of festive products is on display in local supermarkets, with New Year's gift baskets being the most popular item.

"This New Year's gift basket is selling very well, with many consumers purchasing four or five baskets at a time," said Du Lili, a saleswoman at a local market.

Luoyuan County of Fuzhou City, east China's Fujian Province, is one of China's key abalone breeding bases. With the approach of the Spring Festival, abalone sales have surged, and orders have reached their peak during this period.

"From now until the first month of the Chinese Lunar Calendar, our daily purchases range from 10 to 15 tons, which are delivered to various parts of the country," said Shi Lianfeng, a purchaser.

During this Spring Festival holiday, approximately 3,500 tons of abalone produced here will enter the market, driven by the surge in both supply and demand.

In Zaozhuang City of eastern China's Shandong Province, "huamo", a traditional flowery steamed-bun, is not only a popular food but also a feature of folk art.

The city is also renowned for its pomegranate cultivation. Skilled pastry chefs have expertly made huamo featuring pomegranate elements, adding a vibrant touch to the celebrations of the Chinese Lunar New Year.

"Pomegranate flowers, with their bright red color, symbolize prosperity and happiness, while the leaves represent the arrival of wealth and success. The seeds, in turn, symbolize the idea that more children bring greater happiness," said Zhu Lin, a pastry chef.

In Changzhi City, north China's Shanxi Province, waves of consumers are flocking to local flower markets to purchase New Year flowers to decorate their homes.

"Recently, butterfly orchid, flamingo lily, winterberry and other New Year flowers have been particularly popular with customers. As the Spring Festival approaches, we have also made preparations in advance, contacting suppliers to stock up on more sought-after flower products to meet consumer demand," said Chang Xiaohu, a local flower vendor.

The Spring Festival, or Chinese Lunar New Year, falls on Jan. 29 this year and the Spring Festival holiday will last until Feb. 4. It is China's most important festival and an occasion for family reunion. The New Year holiday will usher in the Year of the Snake, which takes the sixth place on the Chinese zodiac of 12 animals.

China ushers in consumption boom ahead of Spring Festival

A 25 percent import tariff on all foreign-built vehicles entering the United States has raised serious concerns for manufacturers in South Africa.

Automotive giants like Mercedes and BMW have long used South Africa as a base for global exports -- but those plans may be shifting into reverse gear after the U.S. announced the punitive measures.

"If you take, for example, BMW, 97 percent of the X3 that we are producing in Rosslyn is exported out of the country. We only sell 3 percent in South Africa, and there's a huge number of those vehicles that also go into the U.S. So there are companies in South Africa that are purely here not because they are selling vehicles in South Africa; they are here to produce vehicles for the global market, and it's important for them to remain globally competitive," said Mike Mabasa, CEO of the National Association of Automobile Manufacturers of South Africa.

U.S. automaker Ford, which has deep roots in South Africa, is also in the crosshairs.

The company recently invested over 300 million U.S. dollars to upgrade its Silverton plant in Pretoria, South Africa, for the production of the world's only plug-in hybrid Ranger, which has just entered production but could face delays or restrictions.

"If an American citizen wants to buy specifically a Ford Ranger that is a plug-in hybrid, they can only place an order in South Africa, nowhere else in the world. So, that means, obviously, the capacity of Ford to be able to produce those vehicles in big volumes is going to be constrained, because Americans are going be looking at another Ford that is produced in another country, or even in the United States," said Mabasa.

South Africa has long enjoyed duty-free automotive exports to the U.S. under the African Growth and Opportunity Act, but that relationship now hangs in the balance.

A sharp shift in U.S. foreign policy threatens to derail an industry that employs thousands and contributes around 5 percent to the country's economy.

"We produce less than 1 percent of global automotive vehicles, so to say. So, in reality, the impact on us is likely to be more disproportionate than those of our peers that produce at the same level. And the risk is actually created -- a concentration risk -- in countries that have greater capacity and are building more; in those countries will be able to absorb some of this," said Parks Tau, South Africa's minister of trade and industry.

Amid growing concerns about overreliance on the U.S. market, Amith Singh, national manager for manufacturing at Nedbank Commercial Bank, emphasized the importance of tapping into regional trade opportunities.

"I think we need to make better use of some of our local agreements, our African continental agreements. How do we leverage that? How do we partner with the government and private sector to start benefiting the countries and the economies aside from the United States? So, those could be the catalyst to drive our localization projects; it could be what we need to drive the African economy as opposed to being completely reliant on the States (United States)," he said.

South Africa is for now standing firm in its decision not to retaliate against steep U.S. import tariffs, set to take effect in just a few days.

Officials in Pretoria acknowledge the challenges posed by the current U.S. administration but are pursuing a diplomatic approach in hopes of maintaining stable relations and preserving the African Growth and Opportunity Act.

US tariffs rock South Africa’s auto industry