Can Xi Jinping Make China Spend?

Even before the 2008 financial crisis, which jolted Beijing into recognizing the volatility of global markets, Chinese officials emphasized the importance of consumption. As early as 2004, Beijing articulated a people-centered approach to development, and in 2007 the 17th Party Congress explicitly called for rebalancing growth and expanding domestic demand.

“Task One of China’s 2026 economic work,” Beijing’s leadership declared at last month’s Central Economic Work Conference (CEWC), is to “adhere to domestic demand as the main driver and build a strong domestic market.” But clear statements don’t necessarily mean clear actions. As much as Beijing says it might want to grow consumption at home, for both domestic stability and international sustainability, Chinese leaders may not be willing to act on the scale necessary to make it reality.

“Task One of China’s 2026 economic work,” Beijing’s leadership declared at last month’s Central Economic Work Conference (CEWC), is to “adhere to domestic demand as the main driver and build a strong domestic market.” But clear statements don’t necessarily mean clear actions. As much as Beijing says it might want to grow consumption at home, for both domestic stability and international sustainability, Chinese leaders may not be willing to act on the scale necessary to make it reality.

Even before the 2008 financial crisis, which jolted Beijing into recognizing the volatility of global markets, Chinese officials emphasized the importance of consumption. As early as 2004, Beijing articulated a people-centered approach to development, and in 2007 the 17th Party Congress explicitly called for rebalancing growth and expanding domestic demand.

Yet, despite these early signals, policy priorities in practice continued to favor industrial capacity, infrastructure, and export competitiveness. Given that, skepticism about political resolve today is understandable.