Can China Break Its Addiction to Exports?
Chinese Premier Wen Jiabao tells members of the National People’s Congress at the opening session on March 5 that China will aim for 7.5 percent growth in 2012 and that the country will work to restructure its economy to become less dependent on exports. (LIU JIN/AFP/Getty Images)
March 6, 2012
| Economics
| Asia and the Pacific
For the first time in eight years, the Chinese government announced that its target growth rate would fall below 8 percent and openly admitted that its economy was imbalanced and in need of restructuring. China has acknowledged the need to reorient its economy towards domestic consumption and away from investment and exports, but has failed to deliver on similar promises in the past. Despite strong foreign exchange reserves, China must now address the consequences of two decades of a policy of promoting exports and questionable investments in state-led construction and infrastructure projects.
The announcement that China was lowering the government’s target for economic growth in 2012 to 7.5 percent was made by Chinese Premier Wen Jiabao at the annual opening ceremony of the National People’s Congress. World markets initially reacted negatively to the news, but LIGNET believes the announcement will be welcomed in the longer term. The economic model China has been following for the past two decades is simply unsustainable. Whether or not China will be able to follow through on its commitment to restructure its economy will be a key challenge in the months, even years ahead. Those challenges are explored below.

Full analysis continues for this Report. To continue reading and for Full LIGNET Access -- Click Here Now
Get Full Access Button

Get unrestricted, actionable analysis and detailed forecasting
from our dedicated team of intelligence experts.

  • Unrestricted entry to 24/7, security-encrypted,
  • Access to penetrating insider reports before you read the news in the mainstream media
  • LIGNET's Morning Brief sent straight to your inbox
  • Delivery of Urgent Action Reports when a global crisis develops
  • Elite viewing privileges to special video briefings from senior intelligence advisers
  • Critical analyses and forecasts of global and financial markets that could protect you, and your assets
  • In-depth dossiers on strategically important countries and regions of geopolitical relevance
  • Exclusive access to a network of world-class intelligence experts
  • Guarantee of Satisfaction
Full Access for $1

Gain FULL access for 30 days and discover the power of information for politics, business, finance, security and much much more.

Join Now Button
Join Now Button

PLUS Get the CIA
World Factbook FREE!
Find out how ››


Comments or questions about this article? Click here to contact us.
Login or Create New Account
Email Address:
New to LIGNET? Create New Account
GET FREE Intelligence Reports

LIGNET provides you with actionable intelligence and in-depth analyses from seasoned insiders including senior CIA officials, presidential advisors, ambassadors, and more.

Sign Up for
FREE Intelligence Reports!
Join Now
Already have an account?
Click here to log in.

Join Now
Knowledge is Power
Only if You Access it!
Upgrade to a full access account and get the official CIA World Fact Book 2014 FREE!
Upgrade Now
FREE CIA World Factbook 2013
What is LIGNET?
Powered by Newsmax
LIGNET is registered in the U.S. Patent and Trademark Office. Langley Intelligence Group Network is registered in the U.S. Patent and Trademark Office.