Chinese E-Commerce Giant PDDs Warning Signals Deepening Consumption Slump

Chinese consumer spending, even on affordable goods, is declining as the economy weakens, impacting one of the few remaining strong areas. PDD Holdings Inc., known for its low-priced platform Temu, issued a surprisingly negative outlook, citing slowing economic growth and changing consumer behavior. This caused a significant drop in PDD`s stock value and negatively affected competitors like Alibaba. PDD`s struggles, along with closures from companies like Din Tai Fung and declining revenue for Starbucks in China, highlight the concerning state of the Chinese consumer market, despite the company`s long-term confidence in its potential.