China doubling down on consumption as route out of export reliance: ex-PBOC official

A former deputy governor of the People’s Bank of China, Zhu Min, stated at the World Economic Forum in Davos that China is prioritizing consumption-led growth to reduce reliance on exports. The policy aims for consumption and income growth to outpace GDP growth, reflecting a commitment to rebalancing the economy. Zhu emphasized that China recognizes the need to move away from dependence on real estate, exports, and credit increases towards a stronger domestic market. This shift is driven by a volatile international environment and will rely on increased state spending on social programs like education and healthcare, as well as continued investment in future technologies. Over the next two decades, China intends to upgrade its manufacturing base to produce higher quality, technologically advanced goods.