Part 10/11:
Analysts from the Rodian Group warn that quick fixes are unlikely to remedy the slow growth of household consumption in China. They assert that a comprehensive restructuring of the economy and fiscal system, aimed at redistributing income from the government to households, is essential for sustainable economic revitalization.
Professor Michael Pettis of Ping University elucidates that China’s low levels of household consumption paired with restrained government consumption levels necessitate running large trade surpluses, bridging the gap between domestic production and demand. This pattern, alongside China's competitive manufacturing sectors, underscores a broader economic weight that has implications beyond its borders.