China’s Chance to Rein In Its Surplus — or Double Down
Visitors salute in front of the portrait of former Chinese leader Mao Zedong at Tiananmen Square in Beijing this week. The Third Plenum, set for July 15-18, is one of the most important political meetings of the Chinese Communist Party. It’s expected to set the policy course for the next five years.
Photographer: Na Bien/BloombergTwo clashing narratives have emerged over China’s heady manufacturing expansion led by electric vehicles, renewable energy and high-tech goods. One says it’s benefiting from comparative advantages, including a giant workforce and domestic market. Another says Beijing’s surging exports are a byproduct of distorting policies that threaten the rest of the world.
Regardless of which is right, Chinese President Xi Jinping and his leadership team have an opportunity next week to either double down on their claim China’s manufacturing prowess is a reflection of normal competition, or tilt toward accommodating economic concerns in foreign capitals from Washington to Brussels.