For many months, since its exit from confinement, the Chinese economy has been worrying. Its growth is weaker and it is worrying because without resolving the imbalance in the real estate market, it is unlikely that it will be able to maintain itself.
The central government is not reacting frankly because the doctrine supported by President Xi is to favor technology rather than the consumer.
The Chinese economy dominates the global manufacturing sector and according to recent research China has a dominant position on critical innovations, those that will shape technology in the future. This is Xi’s bet which is both political, since China has a very significant comparative advantage and economic, assuming that this will help resolve internal imbalances.
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These important measures express the desire to revive consumption. This will boost the dynamics of imports, which are currently very low.
The impact on international trade will be positive and will give China a slightly stronger contribution to global growth. Europe could benefit from this.