At the 2024 Bund Summit, Yu Yongding, an academician at the Chinese Academy of Social Sciences, dropped some economic wisdom 🧠. Contrary to popular belief, he says China isn't dealing with overcapacity—it's actually grappling with a lack of effective demand!
"Our issue isn't producing too much; it's that people aren't buying enough," Yu highlighted. He emphasized the need for China to kickstart its economy by ramping up domestic demand. Think about it like this: if we spark more buying at home, we won't have to stress so much about selling abroad.
To make this happen, Yu suggests China should tap into fiscal and monetary policies—basically, the government's toolkit for managing the economy. By stimulating spending and investment, China can give its economy the boost it needs 🚀.
This shift could be a game-changer, not just for China but for the global market 🌐. A stronger Chinese economy means more opportunities and stability worldwide. So, here's to hoping those policies get rolling!
Reference(s):
cgtn.com
