Search
pacific forum History of Pacific Forum

PacNet #71B – China’s Consumption Problem and the Global Economy

China was once deemed the hope of the global economy. With over 1 billion potential consumers, there was and still is strong reason to believe that China can overtake the US as the world’s largest consumer society, pulling less developed countries out of debt as they build industries to export products to the Chinese market. These dreams are fading, however, as China’s consumer spending fails to keep pace with its rising GDP.