ECONOMY

China Growth Not Fully Translating Into Market Gains, Former Adviser Says

Published: Mar. 19, 2026 12:52 p.m. GMT+8

00:00

00:00/00:00

Listen to this article 1x

Liu Shijin. Photo: IC Photo

China’s economic growth is not fully translating into market-recognized gains, a former senior government adviser said, pointing to persistent deflationary pressures and calling for a shift toward consumption.

Liu Shijin, a former deputy director of the State Council’s Development Research Center, said China should pivot from an investment- and export-driven model toward one led more by consumption and human capital during the 15th Five-Year Plan period starting in 2026.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

China’s economic growth faces deflationary pressures, with the GDP deflator negative for 11 consecutive quarters and weak demand.
Liu Shijin urges shifting from investment/export-driven growth to boosting consumption, especially in education, health, and elderly care.
Consumption lags international averages by about 20% of GDP; Liu warns against more investment in sectors with overcapacity and stresses structural reforms.

AI generated, for reference only