Alicia García-Herrero Jianwei Xu
China’s growth model has continued to rely on expanding industrial capacity and exporting to the world, rather than on domestic consumption. This has led to a significant increase in China’s global share of manufactured exports and has raised concerns about overcapacity (Figure 1; Xu, 2025). The imbalance arises because China’s expanding production capacity is outpacing domestic demand. Overcapacity would be best addressed by boosting domestic demand, particularly through stronger household consumption.
Πηγή: www.bruegel.org