Does China Really Need to Consume More?
In this debate presented by Asia Society Policy Institute’s Center for China Analysis (CCA), Lizzi C. Lee will moderate a discussion between Nicholas R. Lardy and Daniel H. Rosen.
China’s low household consumption is frequently cited as a defining imbalance in its economy and evidence that its investment- and production-led growth model has reached its limits. But how large is that imbalance in reality? Has China already made more progress toward consumption-led growth than commonly recognized? And does sustainable rebalancing require a fundamental redistribution of resources toward households—or can continued investment, manufacturing, technological upgrading, and productivity growth remain viable engines of the Chinese economy?