China is bolstering American firms grappling with a surge in Covid-19 cases that is tempering demand in the U.S. and Europe.
Companies including Coca-Cola Co. , General Motors Co. and Estee Lauder Cos. said they got a lift in the September quarter from Chinese consumers who spent big on soda, perfume, SUVs and other products.
The latest results extend a trend that began earlier in the year as China recovered from the virus. But the Asian country’s return to business as usual has taken on added importance for American firms now that new cases are soaring elsewhere. The U.S. recorded more than 102,800 new cases Wednesday. And Germany, France and the U.K. all issued new restrictions to help curb surging infections.
“This was another extraordinary quarter for Chinese consumer consumption,” Estee Lauder Chief Executive Fabrizio Freda said on the company’s quarterly earnings call on Monday. While the cosmetics giant’s global sales fell 9% from the same period a year ago, its China sales increased 28% to 30%, Mr. Freda said.
Business and consumer activity inside China has returned to pre-pandemic patterns in many ways. Cities are bustling with crowds of office workers and traffic on streets. Restaurants, shopping malls and gyms are packed. Movie theaters are open. Domestic air travel in August inched closer to levels not seen since before the pandemic.
