Shift in Chinese Consumer Psychology: Official Agitation Gradually Losing Effectiveness

China's economy continues to slump, and the French luxury group LVMH predicts that this third quarter will be the worst season in four years. (Huang Yuyan/Dajiyuan)

[People News] The Chinese Communist Party (CCP) has long used nationalism to incite citizens to boycott foreign products. However, recent trends show that Chinese consumer behavior is undergoing a significant shift: pragmatism and the pursuit of quality are gradually replacing “dancing to the tune of official positions” as the core driving forces behind purchasing decisions.

Since Japanese Prime Minister Sanae Takaichi made the remark “If Taiwan has an emergency, Japan has an emergency” at the end of last year, triggering strong protests from Beijing, the CCP subsequently issued warnings to citizens not to travel to Japan and introduced a series of measures to boycott Japan.

But according to data from the booking management platform Tripla, Chinese tourists’ hotel reservations in Japan during the Chinese New Year holiday (February 15 to February 23) increased by 57% compared to the New Year period last year (January 28 to February 4, 2025).

A 23-year-old Beijing university student surnamed Xiao told the Associated Press while lining up outside a Japanese sushi restaurant, “That’s just what the leaders say; it doesn’t mean the attitudes of the people in that country will change.” In her view, geopolitics and diplomatic relations have not affected her consumption habits.

The Associated Press cited analysis from Shaun Rein, managing director of China Market Research Group (CMR), who pointed out that Chinese consumers are no longer “buying Chinese brands just for the sake of buying Chinese brands.” Amid economic uncertainty and employment anxiety, consumers prioritize brands that align with their values and lifestyle definitions.

In the past, the CCP repeatedly incited large-scale anti-Japanese demonstrations. However, in recent years, such mass protests have no longer been seen.

Tseng Chien-yuan, board member of the Taiwan-based Chinese Democracy Education Foundation, believes that “after years of mobilization, Chinese citizens have learned their lesson. They have learned to remain ‘calm’ and no longer follow the government’s stance blindly.” Currently, comprehensive electronic surveillance systems have been established in urban areas across China and are linked to the “social credit system.” Without approval, any acts of taking to the streets, protesting, or smashing shops will certainly result in punishment.

In addition, the CCP authorities habitually stir up nationalist sentiment, calling on citizens to boycott products from certain countries and purchase only domestic brands. But this tactic is no longer as effective as before. So-called national brands initially over-consumed nationalism as a marketing strategy, yet their product quality and pricing often failed to match expectations, with many functions lacking. Numerous drawbacks have made consumers wary. Moreover, current domestic substitutes are often more expensive than major imported brands, presenting a situation of “higher prices and lower cost-performance ratios.” For ordinary people struggling to survive, patriotism is not the primary concern; what matters more is value for money and product quality. △