Erik Green
The Chinese Communist Party has made increasing domestic consumption a priority to ensure economic growth. Ahead of the next Five-Year Plan being announced in March, the Party’s current macroeconomic strategy is likely to significantly limit the effectiveness of their policy solutions however.
As China’s rate of economic growth slows, the country’s leaders have become increasingly concerned that the economy remains overly dependent on investment- and export-driven growth. Since then-premier Wen Jiabao said in 2007 that China needs to ‘adjust the balance between investment and consumption’, policymakers have repeatedly emphasised the need to boost consumption to fix this imbalance. In December 2025, the Chinese Communist Party’s (CCP) theoretical journal Qiushi published a compilation of remarks made by President Xi Jinping since 2015 on the importance of consumption to China’s economy. The piece declared ‘expanding domestic demand is a strategic move’ and emphasised a decision at last December’s Central Economic Work Conference (CEWC) to make boosting consumption the number one economic priority for 2026. Doing so will support the overall objective of increasing domestic demand.
No comments:
Post a Comment