China's Appetite and the Law of Economic Development

What can food spending reveal about the health of an entire economy? In this episode, we dive into the puzzling case of the Engel coefficient in China—a classic economic measure that tracks how the share of income spent on food changes as people grow wealthier. Recent data seems to suggest that progress has stalled, raising concerns about a possible slowdown. But the story isn’t so simple. As dining out becomes more common and China’s massive restaurant industry grows, traditional statistics may be blurring the line between basic necessity and lifestyle spending. We explore how culture, consumption, and economic measurement collide—and what China’s love of food might really be telling us about rising living standards. https://www.economist.com/finance-and-economics/2026/02/26/why-chinese-people-spend-so-much-on-food