At the recent G-20 finance ministers meeting in South Africa, Chinese officials denied accusations of aggressive trade policies, stating that the focus is on domestic demand.
China's Position at G-20
The Chinese delegation, led by Vice Finance Minister Liao Min, defended the country's growth model, asserting that most of its production is aimed at meeting domestic demand, not flooding international markets. Liao emphasized that 'when there’s demand from abroad, China exports accordingly,' dismissing claims of market dominance.
Economic Indicators and Exports
China reported a 5.3% GDP growth in the first half of the year, which Liao described as in line with expectations. While exports contributed to the recent quarterly growth, the country logged a $586 billion trade surplus, partly due to exporters rushing to ship goods ahead of new tariffs. Liao noted that in the past four years, domestic consumption accounted for 86.4% of GDP growth.
Plans to Boost Domestic Demand
The Chinese government is actively working to increase domestic demand through spending support and investments in long-term bonds. These measures have already encouraged sales and are aimed at developing service industries and improving social safety nets. Liao insisted that the current share of external economic activity is reasonable and does not indicate overcapacity.
China seeks to balance between internal and external demand, focusing on sustainable economic growth despite global challenges and market fluctuations.
