The Shanghai Composite Index surged in July amid optimism the government will hit its growth target for 2014 (photo: dpa)

China’s economy in mid-2014: leaders push for Communist capitalism

China’s economy is slowing but it is steady. The government now faces the challenge to move the country’s economy from one driven by investment and exports to one driven by domestic consumption, writes GIS guest expert Ken Davies. Communist Party leaders are trying to motivate the population - used to generations of thrifty living and saving - to spend, spend, spend. Consumption is to edge out investment as the economy’s main engine.

AFTER three decades of rapid growth triggered by reform and opening to the rest of the world, the Chinese economy is growing more slowly as it enters a period of more complex reform and restructuring.



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 Ken Davies
No other country has been so successful in building an advanced economy which remains under the Communist Party’s overall control while being increasingly organised along market lines
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