China Defends Its Economic Model Ahead of U. S. , EU Trade Talks
China has mounted a strong defence of its economic model, signalling it has no intention of abandoning its industry-first strategy despite growing pressure from the United States and the European Union ahead. . .
China has mounted a strong defence of its economic model, signalling it has no intention of abandoning its industry-first strategy despite growing pressure from the United States and the European Union ahead of key trade negotiations. The renewed messaging comes asPresident Xi Jinpingprepares for more meetings with U. S. President Donald Trump later this year, while Brussels has given Beijing until October to address mounting trade disputes. Western governments have accused China of prioritising manufacturing over domestic consumption, arguing that heavy state support for industry has created excess production that floods global markets with cheaper exports. Beijing rejects ‘overcapacity’ criticismChina’s Commerce Ministry recently dismissed allegations of industrial overcapacity, describing them as based on “logical flaws” and driven by “ulterior motives. ”The Communist Party’s theoretical journal Qiushi also defended China’s relatively low consumer spending, arguing it was a historically necessary outcome of the country’s investment-led development model. Meanwhile, a meeting of China’s top Communist Party leaders this week reaffirmed support for the current economic strategy, favouring targeted assistance for industry rather than broad consumer-focused stimulus. No major policy shift expectedAnalysts say Beijing’s latest messaging is aimed at making its negotiating position clear ahead of talks with Washington and Brussels. While officials acknowledge the need to boost domestic consumption and tackle supply-demand imbalances, China appears determined to move gradually rather than introduce sweeping structural reforms. Economists note that Beijing is increasingly presenting its manufacturing strength as a global opportunity rather than a threat, arguing its technological advances and competitive exports benefit the world economy. (with inputs from Reuters)