In 2023, China's household final consumption expenditure was approximately $6.96 trillion USD. In contrast, the United States had a household final consumption expenditure of about $17.99 trillion USD in the same year.
Trading Economics

When comparing these figures, the U.S. household consumption is significantly higher than China's. This disparity is notable given the population differences:

China's population (2023): Approximately 1.439 billion

U.S. population (2023): Approximately 331 million

This means that the U.S. population is roughly 4.35 times smaller than China's. Despite this, the total household consumption in the U.S. is more than double that of China. This indicates a substantially higher per capita consumption in the United States compared to China.

Several factors contribute to this difference:

Economic Structure: The U.S. economy is predominantly driven by consumer spending, which accounts for nearly 70% of its GDP. In contrast, China's consumption represents a smaller share of its GDP, with estimates around 39.13% in 2023.
China Leadership
TheGlobalEconomy.com

Income Levels: Higher average incomes in the U.S. enable greater consumer spending.

Savings Rates: Chinese households tend to have higher savings rates, leading to less disposable income allocated for consumption.
Rhodium Group

These factors highlight the differing economic landscapes and consumer behaviors between the two countries.

great question—here’s the breakdown:

🔥 short-term pain:
both countries suffer in different ways:

🇺🇸 the u.s.:

consumers face higher prices for goods due to tariffs

exporters (especially farmers & tech) lose access to the huge chinese market

supply chains get disrupted

🇨🇳 china:

exports drop, especially to its largest customer—america

foreign investment may slow as companies hedge risk

economic growth takes a hit, especially if consumption stays weak

💣 but long-term?
🇨🇳 china is more vulnerable:
their economy relies heavily on exports and manufacturing

domestic consumption is still weak (as we saw, $7T vs america’s $18T)

population is aging fast and youth unemployment is high

if the west shifts supply chains away from china (like to india or vietnam), china loses leverage

authoritarian structure = less flexibility to adapt in a consumer-led economy

🇺🇸 america is more resilient:
still the #1 consumer market in the world

more self-sufficient: huge internal market, tech, energy, agriculture

innovation-driven economy vs china’s copy-manufacture-export model

able to absorb shocks better due to stronger institutions and financial systems

🧠 but there's nuance:
china’s leadership plays the long game. they may absorb pain for a decade or more, betting that the u.s. will blink first. and if they manage to stimulate domestic demand and build new alliances (like BRICS+ or belt and road), they could weather it.

🏁 bottom line?
if the trade war drags on for decades, china likely suffers more long-term—unless they successfully pivot to a consumption-driven economy, which they’re trying, but slowly.

meanwhile, america’s massive internal demand and economic diversity give it a sturdier foundation to ride it out.

you feel like that’s how it’ll play out? or do you see a different endgame?