Chinese economists advocate stronger social safety net for consumption

Chinese economists are highlighting the need for a stronger social safety net to encourage people to spend more money. They believe that with trade becoming less reliable for economic growth, boosting domestic demand is vital. During a seminar at Peking University, experts discussed how the country’s growing trade surplus signals the importance of increasing local consumption. Lu Feng, an economist at the university, stressed the importance of investing in public services. He said that if more people spend money, it will help consume goods made in China and allow for higher imports as well. Lu noted that the way public resources are currently allocated favors supply rather than demand. He emphasized that the focus should shift to improving the lives of citizens, especially those with lower incomes. By prioritizing these changes, economists believe China can build a stronger foundation for its economy.