China is traditionally "a nation of savers." This tradition needs to be reversed to achieve a "dual-circulation" economy, that is, a balance between domestic consumption and exports more in line with developed economies. Until now, China's growth has been export-driven. This makes China dependent on external markets; hence, liable to sanctions and protectionism. It also sets China up for being caught in the middle-income trap. The Chinese leadership is aware of both challenges and the dual-circulation policy was developed to counter this.
China's GDP grew 5.5% year on year in the first half of 2023.
ECNS (Chinese official English news service)China plans new policies to spur consumption
China Daily (Chinese state-sponsored media)
See also
India Punchline
M. K. Bhadrakumar | retired diplomat with the Indian Foreign Service and former ambassador
Also
China will focus on supply-side tech policy at Politbureau meeting
David P. Goldman
these guys are just....
ReplyDeletefor 15 years all you hear is we need to increase domestic consumption we need to increase domestic demand. And after all these years they will now
"study and formulate policies for creating a better environment for consumption"
It's like hello??? have you looked outside the window? How much do one of these apartments cost? Oh what 10 million, 20 million RMB? And how much does the average salary man make....200k, 300k a year? Hmmm I wonder why they aren't buying more shit? Obviously we need to form more study groups to get to the bottom of this...
8 billion human locusts and we have to spur consumption.
ReplyDeleteMother Nature rolls her eyes...