China’s first Legoland opened this month in Shanghai featuring over 75 rides, attractions and shows including a rollercoaster, boat ride and castle.

Tickets cost double the price of some local theme parks at 549 yuan ($77) for adults and 439 yuan ($62) for children.

But the thrilling rides for young children and Lego sculptures are worth it for Legoland visitor and father-of-two, Cai Tian.

He said his boys, ages four and seven, have a limitless budget at Legoland. However, he and his wife are scaling back in other areas.

“We won’t hire nannies if we can manage. We won’t buy things if we can make it,” he said.

Since last fall, China’s government has tried to boost spending by cutting interest rates and rolling out subsidies for consumers to upgrade things like fridges, furniture and cell phones. Sales in those categories shot up 23% to 30% in the first half of this year. But overall retail sales, which are used as a proxy for consumption, grew only 5% from January to June compared to the same period last year. That is slower than pre-pandemic levels of 7% to 8%.

There is a global focus on China’s domestic consumption because the country is reliant on exports. U.S. Treasury Secretary Scott Bessent has repeatedly said that China’s imbalanced economy negatively affects its trading partners, including America. China is accused by the U.S. and European Union of manufacturing too much, exporting its excess stock overseas at below-market rates, and killing its foreign competitors. Chinese officials deny the charge but also seem to acknowledge more needs to be done to boost domestic consumption.

Spending on services, which includes entertainment, was slightly higher than goods in the first half of this year, up 5.3%.

Legoland Shanghai’s opening was celebrated by Chinese government media. “Booming theme parks highlight China’s tourism, consumption potential,” read the headline of Chinese news agency Xinhua.

Legoland visitor Liao Zuyu said he plans to bring his six-year-old son back regularly and has bought annual passes for 1399 yuan ($196) each.

“When I was growing up in the countryside we didn’t have much to play with. We’d catch fish for fun. I didn’t even get to travel because there was no concept of that when I was young. So, I want to give my son all the fun I didn’t have growing up,” Liao said.

While he works in the thriving medical sector and his income is stable, Liao said he has held back spending in one area: property.

“I wanted to buy a better apartment, but if I buy one now, I will definitely lose money, so I’m waiting,” Liao said.

China’s real estate prices have dropped at least 20% since 2021. That is when Beijing’s leaders made it much harder for reckless property developers to borrow money and the housing bubble popped.

“The price will keep dropping so it is risky to buy now,” Liao said.

He said not upgrading his home is a form of “consumption downgrade,” which is a popular phrase in China to indicate spending curbs.

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A property slump also makes homeowners feel poorer, like Cai.

“Before, when property prices kept going up, we spent freely because our assets were growing. Now that property prices are falling, people are hanging onto their money,” he said.

Plus, he is earning less now.

“I work in commodities trading. My products are exported to Southeast Asia and America,” he said, adding that his business is now affected by U.S. tariffs.

But Cai is still willing to spend on experiences for his children like taking them to Legoland. He also plans to go on two overseas trips with the family this summer.

To increase consumption, some experts say China should strengthen its social safety net.

That would help people like factory worker You Ying in central China. Up until last year she and her husband, a home renovator, were diligent savers. Then last year she was diagnosed with advanced lung cancer.

Although China is a communist country, it does not have a single payer health care system.

“Since I got sick, my illness has crushed my family,” she told Marketplace over the phone from a hospital. 

The family has gone into debt to pay for her treatment. What little is left, You spends on online tutoring courses for her three children.

At Legoland, Wang Puguang was visiting for the day with his family from nearby Hangzhou city.

He spent hundreds of dollars on the trip, but said he is becoming thriftier.

“Now when we travel, we will compare prices, which we didn’t before. This is a form of consumption downgrade,” he said. “We have no other plans for travel this summer.”

Additional research by Charles Zhang.