China affirms it does not aim to dominate global trade, primarily focusing on meeting domestic demand rather than massive exports.
Deputy Finance Minister of China Liao Min emphasized that the country is developing an economic model based on consumption and maintaining a balance of trade, contributing to global economic stability amid market fluctuations.
MAIN CONTENT
China focuses on production to meet domestic needs rather than imposing on the global market.
A GDP growth of 5.3% in the first half of the year reflects stability, with consumption playing a key role.
The government is promoting consumption to transform the economic model and reduce reliance on exports.
Does China really want to dominate global trade?
Deputy Finance Minister Liao Min affirmed that China has no plans to dominate the global market but only exports when there is demand from abroad. According to him, the majority of production is intended for domestic consumption.
China does not aim to control all markets but only exports when there is foreign demand, reflecting a more balanced economic model.
Liao Min, Deputy Minister of Finance of China, in Durban, 19/07/2025
Reports indicate that China's GDP grew by 5.3% in the first six months of 2025, meeting expectations and contributing to global economic stability amid many countries being affected by trade tensions and forecasts of economic slowdown.
Is export the main strategy driving trade surplus?
Although exports have driven a trade surplus of 586 billion USD in the first half of the year, Deputy Minister Liao emphasized that this is not a strategy to dominate the market, but most of the growth is based on domestic consumption.
According to data from the last four years, household consumption and domestic demand account for up to 86.4% of GDP growth, with consumption alone accounting for 56.2%, which is more than 8 percentage points higher than the average from 2016–2020, showing a clear shift in the model.
How is China striving to transform its economic model?
China has significantly increased spending to stimulate consumption by issuing long-term government bonds worth 300 billion yuan (41.8 billion USD), boosting purchases of household goods, electronics, and automobiles with sales increasing nearly tenfold compared to the value of the support.
Developing the service sector, green technology, and digitization will create more high-income jobs, thereby enhancing the purchasing power of the people and ensuring sustainability in consumption.
Liao Min, Deputy Minister of Finance of China, mid-2025
At the same time, China is also enhancing its social welfare system, such as pension funds, to maintain stable consumption levels. Despite criticism regarding a current account surplus of 2.2% of GDP last year, Liao believes this figure is within a reasonable range and does not reflect an oversupply of production capacity.
How do global political and economic contexts affect China's development model?
The tense situation from the trade war initiated by the United States creates much uncertainty; China is actively maintaining domestic demand to ensure growth. Liao is a key figure in trade negotiations with the United States in 2025, helping to create temporary agreements to reduce tensions.
At the end of the G-20 meeting, Liao supported calls for global coordination and emphasized the increased role of the G-20 in responding to the economic crisis.
Frequently Asked Questions
Is China intentionally exporting to dominate the global market?
No, according to Deputy Finance Minister Liao Min, China only exports when there is foreign demand and mainly focuses on domestic consumption.
Is China's GDP growth currently stable?
GDP increased by 5.3% in the first half of 2025, in line with forecasts and contributing to global economic stability.
What is the Chinese government doing to boost domestic consumption?
Issuing long-term bonds, stimulating consumption, developing the service sector, green technology, and enhancing social welfare.
Is China's trade surplus a sign of production surplus?
No, Deputy Minister Liao believes that a surplus of about 2.2% of GDP is reasonable and does not indicate an oversupply of production capacity.
What is the role of the G-20 in the current global economic context?
The G-20 is expected to enhance policy coordination and support economic stability among nations when facing many challenges.
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