China urged to support key middle class, fix social problems to ‘supersize’ domestic market
- Policy adviser Liu Yuanchun says expanding weak domestic demand remains the ‘key measure’, with reforms needed to empower rural population
- But unemployment, low wage growth and poor social security protection are holding back China’s 1.4 billion consumers as it eyes sustainable economic growth
China needs to speed up improvement of its social security net, investment in equality of education and increase income for its middle class population, a policy adviser to Beijing said, to achieve a “supersize” domestic market and to be more competitive internationally.
But problems surrounding unemployment, low wage growth and poor social security protection are holding back China’s 1.4 billion consumers amid its efforts to curb reliance on the real estate sector to sustain economic growth.
“Expanding domestic demand is a key measure of current macroeconomic policy,” said Liu Yuanchun, president of the Shanghai University of Finance and Economics, in his book published in April on China’s development, its core issues and strategic paths.
“As a very large economy, our country’s gap with high-income countries has further narrowed. It can no longer be an export-oriented economy. Continuous expansion of domestic demand is conducive to better meeting people’s new expectations,” Liu added.