Toward a New Economic Growth Model for China
Books, September 30, 2026
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- Toward a New Economic Growth Model for China
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Bibliographic details
- Published: September 30, 2026
- Series: Books
- DOI: https://doi.org/10.5089/9798229037143.071
Key findings and context
- China experienced an extraordinary economic rise over the past four decades driven by market-oriented reforms and integration into global value chains.
- The prior growth model has recently relied heavily on debt-financed investment.
- The current model faces mounting challenges, including:
- rising misallocation
- declining labor force
- weak domestic demand
- elevated financial risks
- increasing geoeconomic tensions
- The book argues China is at a fork in the road and must transition to a new growth model centered on household consumption, services, and productivity gains.
Reform agenda and policy recommendations
- Strengthen social safety nets to support household consumption.
- Expand the service sector to rebalance economic activity away from investment-heavy models.
- Improve business dynamism to foster productivity gains.
- Scale back industrial policies that may hinder allocation efficiency.
- Modernize fiscal, monetary, financial, and insolvency frameworks to reduce financial risks and support sustainable growth.
Intended outcomes and objectives
- Support more balanced and sustainable growth.
- Improve living standards through higher household consumption, a larger services sector, and productivity improvements.
Content in this bundle
- Toward a New Economic Growth Model for China