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China’s Future Economic Growth Drivers: Investment-Driven or Consumption-Led
- 1 Economic and Finance, IBSS, Xi’an Jiaotong-Liverpool University, Suzhou, China
* Author to whom correspondence should be addressed.
Abstract
China, as the world's second-largest economy, plays a crucial role in the stability and development of the global economy. From the perspective of changes in the third wave of economic globalization, economic connections between countries are becoming increasingly tight, but this is also accompanied by a rise in trade protectionism and an increase in geopolitical risks. Against this backdrop, the trade export market of China faces greater uncertainty and risks. Additionally, the intensifying trend of domestic population aging and the tightening resource and environmental constraints have made the traditional investment-driven economic growth model inadequate for the current economic situation. This model, which relies heavily on government investment and external demand, is prone to problems such as overcapacity, resource waste, and environmental pollution. The driving force of investment and exports for economic growth is gradually weakening, while consumption is becoming a more and more important driving force for economic growth in China. To address these challenges, China needs to accelerate the transformation of its economic growth drivers. From the aspect of investment, China needs to shift from the traditional investment-driven economic growth model to an innovation-driven economic growth model and promoting the optimization and upgrading of its economic structure. At the same time, China should strive to build a consumption-driven economic system to cope with the challenges brought by the overcapacity in domestic related industries and insufficient domestic demand.
Keywords
China’s economy, economic driver, investment, consumption
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Cite this article
Zhou,T. (2024). China’s Future Economic Growth Drivers: Investment-Driven or Consumption-Led. Advances in Economics, Management and Political Sciences,113,89-95.
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Volume title: Proceedings of ICFTBA 2024 Workshop: Human Capital Management in a Post-Covid World: Emerging Trends and Workplace Strategies
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