The Chinese Communist Party’s new pledge to fix the "demand side” of the economy has prompted expectations the leadership will implement more egalitarian policies to stimulate consumer spending.
The party’s top leaders used the phrase "demand-side reform” for the first time this month, in a departure from its past focus on "supply-side” changes which involve upgrading industry and cutting capacity in bloated sectors.
Although China is the only major economy set to grow this year due to its effective control of the pandemic, the new slogan signals that the ruling party is worried about the uneven recovery in which household spending has lagged behind investment in real estate and infrastructure. Beijing has not detailed what the phrase means, but officials have dropped hints and economists have been quick to offer suggestions.