China’s Economic Slowdown Sparks Calls for Consumption Shift Amid Trade Tensions
China’s economy grew at its slowest pace in years during the third quarter, with GDP expansion slipping to 4.7% year-on-year from 5.2% in the previous quarter. The downturn reflects the deepening impact of U.S.-China trade tensions, which have stifled investment, industrial output, and retail sales.
Analysts anticipate policymakers will prioritize domestic consumption as a counterbalance to external risks. Societe Generale’s Michelle Lam and Wei Yao argue that stimulating consumer demand could mitigate fallout from U.S. tariffs and declining returns in traditional industries. The upcoming fourth plenum in Beijing may formalize this pivot as part of China’s 2026-2030 development strategy.