Xiaomi recently unveiled their first electric vehicle, the SU7. This car, which looks like a Porsche Taycan, cost $29,900. Within 27 minutes, it got 50,000 pre-orders. For a country that has most of their wealth tied to real estate or just sitting on cash or gold, clearly there is spending fever.

If that's enough to convince you that Chinese households are ready to spend, then consider that American fast food giants like McDonald's, Starbucks, and Yum Brands are all eager to open more stores in China. McDonald's knows how irresistible the opportunity in China is that it bought out Carlyle's stake in their China business.

The real estate collapse that's happening in China will only redirect Chinese household spending from wanting more real estate to other things like stocks, which are dirt cheap at the moment, and on consumer discretionary items like new cars, luxury handbags, and traveling.