China's Exports Soar and the Government Promotes Domestic Consumption
China's export surplus in September set a new record at $29.3bn, despite the global slowdown. But, Chinese government officials and economists agree that exports will fall in coming months. The Chinese leadership issued a report saying that the country would rely more on domestic demand as a source of growth as consumers in Europe and the US cut back on spending.
The Central Committee's report promised better healthcare, more education, housing, pensions, land rights for rural peasants, and a doubling of rural incomes by 2020. The strengthening of the social safety net, which has deteriorated in recent years, and providing higher wages, is thought to increase domestic Chinese demand.
Snapshot asks, does China's central leadership have the will and capacity to boost consumption?