China isn't ready to shift to a consumption-driven economy

Investment-led export-oriented approach has acquired further salience under Xi

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2024-09-06 china mall

People walk past a restaurant at a shopping mall in Shenzhen, Guangdong province, China, on Sept, 6. © Reuters

Amit Kumar is a research analyst with the Takshashila Institution's Indo-Pacific studies program.

The Chinese economy has been struggling to find its feet against a backdrop of slowing growth. Its gross domestic product grew at a disappointing 4.7% year-on-year in the second quarter -- both missing the forecast and trailing the target of 5% set by the Chinese Communist Party earlier this year.

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