(March 3): For decades, China’s leaders have failed to heed calls to rebalance the economy toward consumption as they pursued an investment-heavy, export-oriented growth strategy. With overcapacity cutting prices, a property slump eroding wealth and US President Donald Trump’s protectionist push going global, the old growth model is challenged like never before. China’s social security safety net is meagre, especially for those living in the countryside, which encourages so-called precautionary savings. “Transitioning to a consumption-led growth model should be the overarching priority,” the IMF’s executive directors said in a statement alongside the Washington-based lender’s Article IV annual review. To spur consumers, the government in July started providing subsidies for purchases of services including bathing assistance and rehabilitation nursing for some disabled senior citizens.

Source: The Edge Markets March 03, 2026 05:50 UTC