Right now, there are many structural issues with the economy that need to be addressed, and analysts say Chinese policymakers are balancing efforts to spark consumer spending, while at the same time stimulating growth for developing high-tech industries. For decades, the world's second-largest economy has been driven by export trade and infrastructure investments, while the third pillar, domestic consumption, has been neglected.
As China's export and infrastructure engines sputter, stimulating domestic consumption has taken on more urgency. "The mood among private families and consumers in China is very gloomy," said Alexander Brown, a China analyst from the Mercator Institute of China Studies (MERICS), a Berlin-based think tank. "Nevertheless, Beijing will spend its money primarily on industrial policy in view of the current geopolitical situation and China's goal of resilience."
