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Investing.com -- Peng Sen, president of the China Society of Economic Reform, suggested that the country should aim to raise its consumption levels to match those of developed countries within the next decade. =
He stated on Tuesday that efforts should be made to increase consumption as a percentage of gross domestic product (GDP) to 70% by 2035, up from the current rate of about 55%.
The China Society of Economic Reform, a think tank affiliated with the National Reform and Development Commission, which is China’s economic planning body, supports this stance.
Peng, who previously served as the vice chairman of the National Reform and Development Commission, emphasized the need for a shift in investment focus during his address at the Boao Forum for Asia.
"Our fiscal system used to focus on investing heavily in projects, but now we need to shift to investing in people."
He further highlighted the need for China to close the international gap, noting that consumption levels can reach as high as 80% of GDP in wealthier nations.
These comments add a sense of urgency to the calls for China to adjust its growth model, especially as geopolitical tensions threaten to slow exports and returns on investment diminish. The Chinese government has already identified boosting domestic demand, particularly consumption, as its top economic priority for this year.
However, authorities have not yet set a numerical target for this goal.
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