{"id":473172,"date":"2010-03-25T15:33:55","date_gmt":"2010-03-25T19:33:55","guid":{"rendered":"http:\/\/www.businessinsider.com\/roach-consumer-spending-rebalancing-is-the-path-forward-if-china-is-to-survive-2010-3"},"modified":"2010-03-25T15:33:55","modified_gmt":"2010-03-25T19:33:55","slug":"stephen-roach-examines-chinas-massive-consumption-gap-and-concludes-they-need-a-new-5-year-plan","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/473172","title":{"rendered":"Stephen Roach Examines China&#8217;s Massive Consumption Gap, And Concludes They Need A New 5-Year Plan"},"content":{"rendered":"<p>Stephen S. Roach of Morgan Stanley has come out with a report suggesting China&#8217;s only way out of U.S. consumption based growth is producing their own consumer society. Here&#8217;s a rundown of the key points.<\/p>\n<ul>\n<li>China has no choice but to abandon the growth model driven by U.S. consumption which has been in place as U.S. deleveraging will crush export demand.<\/li>\n<li>China will have to respond with a new five-year plan, centered on the construction of a services economy, based upon the Chinese consumer.<\/li>\n<li>This services economy will have to make up a massive consumer spending gap if it is going to fill the void left by the declining growth of the U.S. consumer that has propelled China&#8217;s development.<\/li>\n<li>China could choose to move to make itself more competitive, but those very moves could lead to protectionist responses from Western governments, eliminating their benefits.<\/li>\n<li>Moves will be made on three fronts to spur domestic demand, including aid to rural areas, creating a new services economy, and the creation of a stronger social safety net. All of these, in concert, will push Chinese citizens to spend.<\/li>\n<\/ul>\n<p>There is quite a consumption gap to be made up.<\/p>\n<p><img decoding=\"async\" src=\"http:\/\/static.businessinsider.com\/image\/4babba2d7f8b9a6a45970100\/china-consumption.jpg\" border=\"0\" alt=\"china consumption\" \/><\/p>\n<p><a href=\"http:\/\/www.businessinsider.com\/roach-consumer-spending-rebalancing-is-the-path-forward-if-china-is-to-survive-2010-3#comments\">Join the conversation about this story &#187;<\/a><\/p>\n<p><b>See Also:<\/b><\/p>\n<ul>\n<li><a href=\"http:\/\/www.businessinsider.com\/get-to-know-the-9-nations-of-china-the-refuge-2010-3\">Get To Know The 9 Nations Of China: The Refuge<\/a><\/li>\n<li><a href=\"http:\/\/www.businessinsider.com\/the-euro-is-so-weak-that-now-the-words-of-a-random-chinese-minister-can-crash-it-2010-3\">The Euro Is So Weak That Now The Words Of A Random Chinese Minister Can Crash it<\/a><\/li>\n<li><a href=\"http:\/\/www.businessinsider.com\/entire-hangzhou-apartment-tower-sells-out-in-a-single-night-2010-3\">Entire Hangzhou Apartment Tower Sells Out In A Single Night<\/a><\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/TheMoneyGame\/~4\/r1yEpUDuHDM\" height=\"1\" width=\"1\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Stephen S. Roach of Morgan Stanley has come out with a report suggesting China&#8217;s only way out of U.S. consumption based growth is producing their own consumer society. Here&#8217;s a rundown of the key points. China has no choice but to abandon the growth model driven by U.S. consumption which has been in place as [&hellip;]<\/p>\n","protected":false},"author":1977,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-473172","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/473172","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/1977"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=473172"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/473172\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=473172"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=473172"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=473172"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}