China will change its development model from 2021: President Xi Jinping

New Delhi: China is set to change its development model from next year, relying more on domestic consumption than export-reliant growth which propelled it to become the world’s second-largest economy next only to the United States, The Chinese President Xi Jinping said in Asia-Pacific Economic Cooperation (APEC) on Thursday.

“From the next year, China will embark on new journey toward fully building a modern socialist country,” Xi said

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A main strength of China is other nations’ markets and on trade – Xi Jinping said that “The model of reliance on foreign markets and resources had gone through some gradual changes. The ratio of foreign trade to GDP dropped from 67 per cent in 2006 to less than 32 per cent in 2019, while the ratio of current account surplus to GDP has come down from 9.9 per cent in 2007 to less than one per cent today,”

“In seven years since the 2008 global financial crisis, the contribution of China’s domestic demand to GDP exceeded 100 per cent, making domestic consumption the main driver of its growth,” he said.

Xi expressed his trust on the new development model and said “The new development paradigm would enable China to fully unlock its market potential and create greater demand for other countries and as China’s economy will grow – our people naturally want to lead an even better life. This will create more demand for a greater variety of quality products, technologies and services from across the world,”