Re-shaping global-ness by spending overseas: Analysis of emerging Chinese consumption abroad

Abstract

In most urban network studies, advanced producer service firms and transportation carriers are regarded as the main agents building intercity connections. With rising global incomes and increasing mobility of people worldwide, however, flows consisting of ordinary consumers have become a new way for cities to be connected to the globe. Using transaction data from China UnionPay, this paper explores the spatial network pattern of emerging Chinese overseas consumption by tracing the origins, destinations, and volumes of spending flows. We find that a global network built on consumption flows originating from mainland China improves the global-ness of countries and regions that have historically been peripheral in the financial networks created by multinational firms or inter-port transportation. Given the soaring consumption capacity of urban Chinese residents and the re-orientation of urban policies in China, it is expected that Chinese consumption will keep re-shaping the global-ness of both Chinese cities and numerous destinations worldwide.