The Illogic of Consumption as a Growth Driver

The recently completed U.S.-China Strategic and Economic Dialogue in Beijing underscored the prominence that each side has given to promoting consumption as a solution to China's economic slowdown.

As highlighted in a June 7 fact sheet released by the U.S. Department of the Treasury, a major dialogue theme dealt with "advancing policies to shift China's growth model to one driven by household consumption rather than by investment and exports."