October 28, 2020

We should keep a close watch of China’s dual circulation strategy

In Mint, Niranjan Rajadhyaksha writes about the lessons for India from the expected shifts in Chinese economic strategy, and the opportunity for India to take advantage of a big move of labour-intensive manufacturing out of China. 



"The Chinese leadership is meeting this week to decide its policy agenda for the next five years. There are two important economic initiatives that deserve close attention. First, China has already rolled out an ambitious Made In China programme. Second, the Chinese politburo had in May accepted a new strategy called the “dual circulation strategy". How these two pan out will have profound implications for the rest of the world, including India...


The Chinese leadership clearly sees the rebalancing of global supply chains as an irreversible trend. The two big shifts in its economic strategy show that the second largest economy in the world is trying to become less dependent on others, largely for geopolitical reasons, just as the rest of the world is trying to reduce its China exposure. These moves should also be seen against the backdrop of massive economic change over the past 15 years."


You can read the full article here

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