China Looks Inward for GDP Growth

Faced with falling demand for Chinese exports amid trade friction with the United States and other partners, President Xi Jinping has unveiled a "dual circulation" policy that calls for boosting domestic consumption to create demand for products that are now sold abroad. A new name for the rebalancing toward consumption that China tried and failed to do a decade ago, "dual circulation" faces hurdles as the share of private consumption in China's GDP remains low, household debt as a share of disposable income is rising, and policies that would raise wages for workers would make Chinese-made goods more expensive and reduce export competitiveness.

2020-10-16
Share
Cartoon by Rebel Pepper
Photo: RFA
Add comment

Add your comment by filling out the form below in plain text. Comments are approved by a moderator and can be edited in accordance with RFAs Terms of Use. Comments will not appear in real time. RFA is not responsible for the content of the postings. Please, be respectful of others' point of view and stick to the facts.

View Full Site