At the 2024 Bund Summit, Yu Yongding, an academician at the Chinese Academy of Social Sciences, addressed concerns about China's economic landscape. Contrary to the widespread belief that China is grappling with overcapacity at a macroeconomic level, Yu asserted that the real issue lies in the lack of effective demand within the domestic market.
"China has not been suffering from overcapacity at the macroeconomic level," Yu stated. "Our problem is a lack of effective demand."
He emphasized the importance of leveraging fiscal and monetary policies to stimulate economic growth. By increasing domestic demand, China can alleviate the pressure on exports and foster a more balanced economy.
Yu's insights come at a pivotal time as China navigates global economic uncertainties. Stimulating domestic consumption and investment could play a crucial role in sustaining growth and ensuring long-term stability.
Reference(s):
cgtn.com
