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Still, China’s progress in spurring domestic spending remains debatable.
Some economists see China making steady progress in implementing its “dual circulation” strategy, as the country has become less vulnerable to external shocks. According to official data, 85 per cent of China’s 100,000 business entities with export operations also cater to the domestic market, with local sales accounting for about three-quarters of this group’s total sales.
Mainland China’s export machine, however, is expected to see a slowdown this year and beyond, following US President Donald Trump’s imposition of higher tariffs against the country.
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Although China has pledged further opening up to global investment and trade, the external environment could be less accommodating for mainland exporters owing to the high double-digit tariffs imposed by Trump on Chinese imports.