At the 2024 Bund Summit, Yu Yongding, an academician at the Chinese Academy of Social Sciences, addressed the prevailing concerns about China’s economic landscape. Contrary to popular belief, Yu asserted that China is not grappling with overcapacity at the macroeconomic level.
Yu emphasized that the core issue lies in a lack of effective demand within the economy. \"China's problem is a lack of effective demand,\" he stated, highlighting the need for strategic interventions to stimulate growth.
To tackle this challenge, Yu advocated for the implementation of relevant fiscal and monetary policies aimed at boosting domestic demand. By increasing consumption and investment within the country, China can alleviate the pressure on its export sector, creating a more balanced and resilient economic environment.
This approach not only aims to stabilize the Chinese economy but also has potential ripple effects on global markets. As China shifts its focus towards enhancing internal demand, it could lead to new opportunities and shifts in international trade dynamics.
The insights shared by Yu Yongding provide a fresh perspective on China’s economic strategies, underscoring the importance of fostering sustainable growth through effective demand stimulation.
Reference(s):
cgtn.com
