China Review News (CRN) recently published an article discussing China’s macroeconomic trend, based on the goals set by the recent Third Plenary Session of the 18th Central Committee Conference of the Communist Party. The author expressed the belief that China’s rapid economic growth was largely based on demand that was not domestic. Over the past 35 years, China’s domestic consumer market has been playing less and less of an important role in its GDP numbers. The article identified four primary challenges China faces: 1) Taking advantage of the rapid developments in the science and technology space; 2) Reducing the dependency on pure government investments for economic growth; 3) Adjusting the economy gracefully to deal with the lack of younger workers due to an aging society; 4) Balancing the domestic economy and China’s role in the global economy. The author called for a significant change of the economic growth model and structure so as to focus more on domestic consumers.
Source: China Review News, January 12, 2014