Boosting consumption has always been a lower priority for China’s leadership, compared to exports and investments, says former SCMP editor-in-chief Wang Xiangwei.
Shoppers in the Sanya International Duty Free shopping complex in Sanya, Hainan province, China on Jan 25, 2023. HONG KONG: In 2021, when China further relaxed family planning controls by allowing couples to have up to three children, the major policy shift was expected to trigger a “revenge” baby boom. In late 2022 when Beijing suddenly lifted zero-COVID controls, the authorities banked on post-lockdown “revenge spending” to drive economic growth.All those expectations have fallen flat.
Indeed, in 2022, China accounted for 31 per cent of global manufacturing value added and 27 per cent of global real exports, but only 13 per cent of global consumption, according to a report co-authored by Larry Hu, head of China Economics at Macquarie Group. He expected the gap to continue to widen and theCommentary: Chinese millennial and Gen Z consumers want more than a good bargain
Little has been written about the fact that boosting consumption has always been a lower priority for China’s leadership, compared to exports and investments, the other two traditional engines of growth.
Since China’s reform and opening up in the late 1970s, successive leaders have pursued the investment-led growth model supported by booming exports to build up the world’s second-largest economy. Instead, China’s economic planners have unleashed more infrastructure investments to boost growth. Visitors to China may be impressed by high-speed railways and modern airports.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Commentary: Doing a job you find meaningful is great - until it consumes your lifeIf your work is deeply meaningful to you, you may end up prioritising it over other aspects of your life, says King's College London's Andreana Drencheva.
Read more »
Commentary: Malaysia and China mark an important milestone in diplomatic tiesRelations between the two countries have evolved considerably over the last half century. It is in China's interest to have a stable and prosperous Southeast Asia, says Asian Studies professor James Chin of the University of Tasmania.
Read more »
Commentary: China caught in the middle as Trump, Biden clash over who’s tougherAs the 2024 US presidential race heats up, China is once again being used as a political punching bag. RSIS’ Jonghyuk Lee weighs in on who China might be rooting for in a potential Biden-Trump presidential rematch.
Read more »
Commentary: What do Biden’s big new China tariffs mean for the rest of the world?Downsides abound from US tariff hikes on Chinese electric vehicles, but there’s also a path where developing nations benefit, says a Lowy Institute director.
Read more »
Commentary: How will new Taiwan President William Lai handle ties with China?Taiwan’s new President William Lai was sworn in on Monday (May 20). NUS political scientist Chong Ja Ian looks at how he will handle ties with China.
Read more »
Commentary: How resilient is China’s ‘world’s factory’ to supply chain shifts?While China’s industrial prowess benefits global consumers by providing affordable products such as clothing, electronics and smartphones, it is also a double-edged sword, says Associate Professor Marina Yue Zhang.
Read more »