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GEAB 161

The monthly bulletin of LEAP (European Laboratory of Political Anticipation) - 15 Jan 2022

Systemic shift: From Made in China to Powered by China

China’s economy weakened further in August 2021 after a fresh Covid outbreak curbed consumer spending[1]. To relaunch the economy after the Covid-19 crisis, the country continued its old-style supply boost by starting state sponsored projects and reinforcing factories to produce more and more. Yet, as data has shown, internal demand in China has not risen as much as the GDP (household expenditure component of GDP, over the 20 past years). The country needs to find new ways to flood more products to the world, and it needs to do so in a global context of “everything but China” that has emerged with the pandemic, which is dampening prospects of open markets. A trade surplus at an all-time record high was recently published reaching $84.54B USD[2]. How can this surplus create more fat from an already leaned and ripe manufacturing? 

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