Editorial | A Chinese economy focused on home market can be just as powerful

China’s economy has proved to be resilient, but the threats of deflation, a softening labour market and weak consumer demand remain. In this context, President Xi Jinping held a high-powered meeting to elevate consumption and an integrated domestic market as the main focus of policymakers. Against a volatile global economic environment and an ongoing trade and tech war with the US, it is imperative that Beijing moves quickly to fortify the domestic economy by enhancing its strengths and eliminating weaknesses.

The meeting at the powerful Central Financial and Economic Affairs Commission calls for a “unified national market”. Multiple concerns need to be addressed, such as self-defeating cutthroat competition, which has driven out businesses, and persistently depressed consumer prices. But it’s not just businesses undercutting one another; provinces often penalise each other’s goods and services. Local officials must understand that doing business across each other’s boundaries enhances commerce and is a win-win.

Businesses have long complained about unpredictable changes in regulation and enforcement. They have been reassured by the passage of the first law on the protection of the private economy. Regulatory reforms need to be made with the adaptability and survivability of private companies and sectors in mind.

Meanwhile, party discipline has been severe enough to deter officials from spending much in public, lest they be accused of corruption. But if they are using their own money and not spending ostentatiously, it’s good for the local economy and must be welcomed.