Lunar New Year Sales In Line With Expectations

Chinese consumption is a different story, however. In 2018, it contributed 76% to GDP growth. Retail sales, the key component of consumption, rose 9% from one year earlier, down from 10.2% in 2017. Yet, both figures were 2-3% higher relative to overall GDP growth.

In other words, China’s structural rebalancing toward consumption and innovation remains on track. That’s why most analysts see consumption as the largest driver of the Chinese economy in the 2020s.

Recently, Chinese economy has accounted for some 30-40% of global growth, thanks to Chinese consumption. If and when U.S. tariff wars penalize that consumption more, global growth prospects will be undermined accordingly.

That’s the not-so-secret secret of the ongoing tariff wars. Due to its importance to global economy, China fuels growth prospects of many other economies. Consequently, unilateral tariff against China will penalize global economic prospects.

1 2 3
View single page >> |

Disclaimer: Dr. Dan Steinbock is an internationally recognized strategist of the multipolar world and the founder of Difference Group. He has served at the India, China and America Institute ...

more
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.