The world’s second-largest economy wants to become less reliant on foreign markets. Importantly, China’s commerce ministry will focus on domestic consumption this year. The trade war with the U.S. fell down the list of priorities. It is worth noting that, China is the most populous country in the world.
Interestingly, last year was a good one for China’s export machine. This is despite the problems from the Covid-19 pandemic at the start of the year. The country’s exports quickly rebounded as China brought the coronavirus under control while other major economies suffered. For example, in November, exports increased by 21.1% compared with the same month last year, to $268 billion, while the January-November total rose by 2.5% to $2.32 trillion. Notably, it helped to lift the country’s gross domestic product (GDP) growth to 4.9% in the third quarter.
China and its priorities
It is worth noting that, the focus on domestic demand in the statement contrasts with last’s year statement, the focus of which was on efforts to resolve the trade war with the U.S. Nevertheless, uncertainties in the global economy, as well as policies adopted by the New Biden administration, will continue to have an impact on the country’s foreign trade and investment.
Importantly, the dual circulation strategy is one way of offsetting these potential problems, by making domestic demand an important driver of development over the next 15 years.
As can be seen from the information mentioned above, China wants to become less dependent on external factors. The world’s second-largest economy has the potential to address various challenges. However, even for China, it won’t be easy to become less reliant on foreign markets. Importantly, it would take time to reach this goal. China should work with other countries to improve the situation around the world in several years.