Chinese companies must now focus on wooing consumers at home
'mega-sized' consumption powerhouse . Not just the world's factory, but its market too. His words underlined Beijing's
intention to make household spending a core growth engine rather than a supplement to exports.
Faced with the harsh reality of steep tariffs and rising protectionism in the United States, many Chinese manufacturers are re-routing their exports from their biggest market to
European and
Southeastern Asian nations. This may offer short-term relief from the
US-China trade war , but the long-term play? The domestic market.
Many Chinese firms have always treated the national economy as a priority; however, fierce price competition and weak consumer confidence have made it a difficult market to scale, giving them strong incentives to boost exports.
But given the global trade fragmentation, diversification alone no longer offers certainty or scale. This was illustrated by data showing China's manufacturing sector
contracting for a third consecutive month in June.
The home market was never a nice-to-have, but it has become more of a
strategic priority . The reasons are straightforward: US tariffs remain punishing, despite a
trade truce agreed on to reduce levies recently as high as 145 per cent.
02:09
China, US top negotiators agree on 'framework' that will need approval from Xi and Trump
China, US top negotiators agree on 'framework' that will need approval from Xi and Trump
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