Weekend Long Read: How China Can Avoid the Worst Path to Reviving Consumer Spending

In light of subdued domestic consumption, China has three options to tackle economic headwinds. The best way is to restructure its income distribution system. A backup plan could be stabilizing economic growth through continued investment while the income distribution transformation is in progress.

As a last resort, the government could halt investment stimulus while income distribution restructuring has yet to take any shape, but this should be avoided.