Part 8/9:
The ongoing tensions between China and the international community are fueled by this economic imbalance. While there are potential reforms—shifting assets from state to household sectors, enhancing the social safety net, and appreciating the currency—these changes appear contrary to the trajectory favored by the current leadership under Xi Jinping. Until China manages to ramp up consumer spending and diversify its economic output, the relationship between its economic model and global trade dynamics will remain strained.