The Western business press continues to express dissatisfaction with China’s economic policies, particularly criticizing the lack of emphasis on consumer-driven growth. Recently, Beijing announced a $1.4 trillion plan to restructure local government debt, yet observers noted the absence of initiatives aimed at boosting domestic consumption.
In September, the People’s Bank of China took steps to support the property and stock markets, but these measures fell short of significantly stimulating consumer spending. This pattern of critique is expected to persist, stemming not from the actions of Chinese authorities but from fundamental misunderstandings within Western perspectives on what drives China’s growth.
The disconnect became evident during the reactions to the third plenary session of the 20th Central Committee of the Communist Party of China (CPC) held in July. The session outlined ambitious goals for revolutionary technological breakthroughs, innovative production allocation, and industrial transformation aimed at fostering new industries and high-quality growth drivers.
Despite these forward-thinking objectives, the Western press, including The Financial Times, focused on what they viewed as a missing emphasis on shifting China’s growth model away from investment and exports towards household consumption. Critics argue this shift would help reduce China’s significant trade surplus and boost global demand.
However, from China’s perspective, enhancing consumer spending at the expense of investment is not a feasible strategy. Instead, China continues to prioritize exports, which remain robust despite rising global protectionism and anti-globalization sentiments. In 2024, China’s trade surplus is projected to approach unprecedented levels, nearing $1 trillion, according to Bloomberg.
This steadfast focus on exports aligns with China’s dual circulation strategy, which seeks to balance export growth with domestic investment and consumption. As the global economic landscape evolves, China remains committed to its chosen path, confident in its ability to sustain growth through technological innovation and industrial advancement.
Reference(s):
cgtn.com
