China’s move to double down on a pivot away from export-led growth in favour of developing its domestic market reflects a strategic shift by Beijing to prepare for the “worst case scenario” after the coronavirus pandemic, according to analysts.
“It’s a kind of preparation for the worst-case scenario, including the decoupling with the United States and even the whole Western world,” said Hu Xingdou, a Beijing-based independent economist.
Hu said China has no choice but to face the adversity, but warned that it must not undo its market reforms and not go back to the closed nature of a command economy where the central government makes all economic decisions.