A screen shows the gross merchandise volume, a measure of sales, after 12 minutes 49 seconds of Singles Day sales, as it reaches about 7,147,554,107 USD in Hangzhou in China
PHOTO: -/AFP/Getty Images
A screen shows the gross merchandise volume, a measure of sales, after 12 minutes 49 seconds of Singles Day sales, as it reaches about 7,147,554,107 USD in Hangzhou in China's eastern Zhejiang province early on November 11, 2019.
Now playing
02:41
Singles' Day sales show Chinese consumer enthusiasm
Now playing
01:36
Michael Bolton wants you to break up with Robinhood
Now playing
00:00
Watch the Dow live
Now playing
04:34
See what has happened to Trump's DC hotel after his loss
Now playing
01:41
Meet the 29-year-old cancer survivor set to make history in space
WASHINGTON, DC - JANUARY 15: MyPillow CEO Mike Lindell waits outside the West Wing of the White House before entering on January 15, 2021 in Washington, DC. (Photo by Drew Angerer/Getty Images)
PHOTO: Drew Angerer/Getty Images
WASHINGTON, DC - JANUARY 15: MyPillow CEO Mike Lindell waits outside the West Wing of the White House before entering on January 15, 2021 in Washington, DC. (Photo by Drew Angerer/Getty Images)
Now playing
00:39
MyPillow and its CEO Mike Lindell sued by Dominion
Bill Gates AC intv 022021
PHOTO: CNN
Bill Gates AC intv 022021
Now playing
02:32
Will Bill Gates go back to shaking hands? Hear his thoughts
02 Bill Gates AC intv 02202021
PHOTO: CNN
02 Bill Gates AC intv 02202021
Now playing
02:13
Bill Gates optimistic about climate policy under Biden WH
Now playing
05:37
Texas mayor: We were not prepared
Now playing
03:05
Watch lawmakers grill Robinhood's CEO
PHOTO: CNN
Now playing
04:47
ERCOT CEO explains how Texas power failure happened
NEW YORK, NEW YORK - OCTOBER 15: A person walks by a closed New York City business on October 15, 2020 in New York City. As American workers continue to struggle in an economy brought down by COVID-19, new jobless claims rose to 898,000 last week. It was the highest number since August 22 and represented a gain of 53,000 from the previous week
PHOTO: Spencer Platt/Getty Images
NEW YORK, NEW YORK - OCTOBER 15: A person walks by a closed New York City business on October 15, 2020 in New York City. As American workers continue to struggle in an economy brought down by COVID-19, new jobless claims rose to 898,000 last week. It was the highest number since August 22 and represented a gain of 53,000 from the previous week's upwardly revised total of 845,000. (Photo by Spencer Platt/Getty Images)
Now playing
01:11
Weekly initial jobless claims jump to 861,000
Now playing
02:42
A challenging year for women: Millions are out of work
MELBOURNE, AUSTRALIA - FEBRUARY 18: In this photo illustration a message is seen on Facebook mobile, on February 18, 2021 in Melbourne, Australia. Facebook has banned publishers and users in Australia from posting and sharing news content as the Australian government prepares to pass laws that will require social media companies to pay news publishers for sharing or using content on their platforms. (Photo by Robert Cianflone/Getty Images)
PHOTO: Robert Cianflone/Getty Images AsiaPac/Getty Images
MELBOURNE, AUSTRALIA - FEBRUARY 18: In this photo illustration a message is seen on Facebook mobile, on February 18, 2021 in Melbourne, Australia. Facebook has banned publishers and users in Australia from posting and sharing news content as the Australian government prepares to pass laws that will require social media companies to pay news publishers for sharing or using content on their platforms. (Photo by Robert Cianflone/Getty Images)
Now playing
03:05
Facebook blocks news sharing in Australia in response to government proposal
PHOTO: Anadolu Agency via Getty Images
Now playing
00:58
Watch Trump's Atlantic City casino implode
People walk by a closed restaurant in Rockefeller Center on the last Sunday before Christmas on December 20, 2020 in New York City. Rockefeller Center, where the annual Christmas tree is displayed among other holiday attractions, has far less crowds this year and numerous restrictions due to the ongoing COVID-19 pandemic. New York City has seen a slow uptick in COVID hospitalizations over the last few weeks but is still far below the numbers witnessed in the spring. (Photo by Spencer Platt/Getty Images)
PHOTO: Spencer Platt/Getty Images
People walk by a closed restaurant in Rockefeller Center on the last Sunday before Christmas on December 20, 2020 in New York City. Rockefeller Center, where the annual Christmas tree is displayed among other holiday attractions, has far less crowds this year and numerous restrictions due to the ongoing COVID-19 pandemic. New York City has seen a slow uptick in COVID hospitalizations over the last few weeks but is still far below the numbers witnessed in the spring. (Photo by Spencer Platt/Getty Images)
Now playing
03:12
These owners had to close their iconic restaurants during the pandemic
(CNN Business) —  

With China’s economy slowing, many market and economic experts believe that the United States has more leverage to negotiate favorable terms to end the trade war.

They may be wrong about that.

Chinese consumers continue to spend, despite concerns about tariffs imposed on the country by the Trump Administration. Chinese companies are reporting robust earnings. Alibaba (BABA) and its top online retail rival JD.com (JD) both had record sales on Singles Day, a Chinese shopping holiday for young people. Luckin Coffee (LK), a rapidly growing rival to Starbucks (SBUX) in China, recently reported strong earnings as well.

Other Chinese e-commerce firms, such as online travel leader Trip.com (TCOM) (formerly known as Ctrip) and Pinduoduo (PDD), which offers discounts to people who buy goods online as a group, are thriving.

Trade war worries don’t seem to bother investors, either. Alibaba’s stock is up 35% so far in 2019 — more than twice the 16% gain for Amazon shares. JD stock has soared nearly 60% while Pinduodudo’s is up 85%.

“The Chinese consumer is holding up. The numbers are staggering,” said Aaron Clark, a portfolio manager at GW&K Investment Management.

The fact that Chinese consumers keep spending seems to be an expression of confidence in the overall health of that nation’s economy. More tariffs and any escalation of the trade war would surely put more pressure on China’s manufacturing sector, but that hasn’t kept its growing middle class from buying ever more gadgets and other consumer products.

No pressure on Xi to blink as long as consumers do their part

“This data suggests that, while the Chinese economy remains under pressure, it may easily tolerate the situation and may not be forced into any concessions that it is not fully comfortable with,” said Kristina Hooper, chief global market strategist with Invesco, in a report last week.

Erik Zipf, who heads emerging market equities at DuPont Capital, said in an interview with CNN Business that he shares that view.

“I wouldn’t consider China to be in a fragile state, but there is a good slowdown on the industrial side,” he said.

Still, the Chinese consumer, particularly those in big cites like Shanghai, Beijing and Shenzhen, is doing well, Zipf said, which suggests many Chinese consumer companies should continue to post solid growth.

The solid numbers from Chinese retailers show that China’s economy is not “falling off a cliff like I read in the media every day,” noted Brendan Ahern, chief investment officer at KraneShares, an investment firm that runs several China-focused ETFs, in a report last week.

He said that big US brands like Apple (AAPL) and Nike (NKE) are still doing well in China, proving that Chinese consumers have not lost their appetite for American products, despite the often heated rhetoric between the two countries.

“2019 Singles Day was clearly a major success,” Ahern said in the report.

Clark, the GW&K portfolio manager, says that as long as Chinese consumers keep spending, Chinese President Xi Jinping may hold out as long as possible for the best trade deal he can get with the United States — even if that means sitting tight until after the 2020 presidential election, when he might be dealing with a new Democratic president or an emboldened President Trump.

“China is not just a manufacturing hub anymore,” Clark told CNN Business. “They have strong consumers and are starting to look more like the US economy. Xi can wait things out and take their chances because the Chinese economy is not cratering.”