
China shifts to spending-led growth as economy cools
China is pushing a shift from investment- and export-led growth to boosting household spending, unveiling a 4.5–5% growth target and a suite of “investing in people” measures—expanded elder care, paid leave, child support, and an urban-rural income plan—to lift consumption. Analysts caution the shift will be gradual, given weak consumer confidence, a long downturn in real estate that erodes household wealth, birth-rate declines, and high youth unemployment, with stimulus effects shown to be limited so far. The plan’s success hinges on restoring incomes and confidence rather than a short-term fiscal push, while China continues to emphasize advanced manufacturing and tech as anchors for future growth.












