The country is embarked on the process of converting to a consumer economy in the face of international trade tensions and domestic problems. Recent data discloses the consistently stable performance of foreign trade in the first two months of this year, which has been a manifestation of the country’s resistance in the face of geopolitical uncertainties.
The Chinese officials are promoting domestic consumption as one of the major elements in their economic policy of long duration. In this light, the move is supposed to weaken the country’s reliance on exports and to create a positive economic climate in the face of varied global consumer demand.
The measures aimed at promoting consumption are traced to specific tax exemptions and rewarding programs for start-ups in the spheres of technology and retail. Furthermore, the money put into infrastructure projects is foreseen to create jobs and lift the economic level in poor areas.
Yet, there are a number of obstacles. The US tariffs that are higher than usual have been a source of pressure on Beijing for the troubled international trade.
The president’s administration recently got the rate of tariffs on all Chinese imports to double, which is now 20%, and it made Beijing state their determination to take equivalently drastic steps. In doing so, these developments only worsened the relationship between the two most economically mighty countries.
Nevertheless, despite the obstacles, the country still looks reliable in the long run. Year after year the most populous country puts aside enough money to dive into the technology sector and be in the front rows in production of goods such as artificial intelligence and solar power.
Market experts say differently though. Other demographic factors, including the slowing population growth, will be a brake on economic growth as well. Yet, the government is investigating whether it is possible to use technology to maintain the production level, in this case the aging would then have a positive effect.
The proper navigation of complications will set China on the right path, while its equilibrium between its home affairs and the world outside will be a key factor in shaping its course in the next few years.
