'Shopping in China' a broader economic repositioning

By announcing the extension of the "Shopping in China" initiative into 2026, Beijing is signaling something far more consequential than a temporary boost to retail activity or consumer tourism. What is taking shape is a strategic adjustment to how China intends to sustain growth — and, more broadly, how the geography of global demand may evolve in the coming years. This is not simply about expanding sales; it is about repositioning China within the global economy as a central market, not only a production hub.

For decades, China's economic rise followed a trajectory familiar to development economists: rapid industrialization, competitive integration into global value chains, and exceptional export capacity. This model turned the country into the "world's factory", supplying international markets while accumulating foreign exchange reserves on an unprecedented scale. Today, however, China appears prepared to move beyond that role.

The effort to attract foreign consumers, encourage global brands to launch products domestically, and transform major cities into international shopping destinations points to a clear ambition: to become not only a leading producer, but also one of the world's principal markets.

This transformation should not be read as a retreat from industrial strength. On the contrary, it reflects an attempt to combine productive capacity with market depth — a combination historically associated with economies capable of exercising real centrality in the international system. The United States achieved such a balance in the 20th century. China now appears poised to test a similar configuration in this century.

From a political economy perspective, this signals a possible transition in China's growth model. Economies heavily dependent on exports are inherently vulnerable to external cycles, protectionist pressures, and geopolitical shocks. Strengthening domestic consumption — and now actively attracting foreign consumers — functions as a structural buffer against global instability.

This is not a short-term adjustment; it is a strategic recalibration aimed at reducing exposure to external volatility without retreating into isolation. China does not appear to be seeking disengagement from the global economy, but rather greater resilience and relative autonomy — the capacity to sustain growth even under less favorable international conditions. In an era marked by trade frictions, technological restrictions, and supply-chain reconfiguration, expanding the weight of domestic demand becomes a form of macroeconomic insurance.

Some observers may interpret the invitation to global brands as evidence of accelerated liberalization. Such a reading misses the broader picture. What is taking place resembles a carefully managed opening — gradual, selective, and aligned with national priorities.

By attracting international companies, China appears to be pursuing several objectives simultaneously: raising quality and competition standards, encouraging innovation, pushing domestic firms up the value chain, diversifying consumer choice, and consolidating Chinese cities as global consumption hubs. This approach does not suggest a surrender to market forces, but rather the continued use of openness as an instrument of development policy.

The broader international context reinforces the logic behind this approach. The global economy is entering a period of heightened fragmentation, marked by strategic competition, industrial policy revival, expanding trade barriers, and persistent geopolitical tensions. In such an environment, excessive reliance on external demand becomes increasingly risky.

Strengthening domestic consumption while expanding its international reach allows China to reduce sensitivity to political and commercial shocks. Seen in this light, the initiative is less a stimulus policy than an architecture of resilience.

Some external analyses may frame the initiative primarily as a response to short-term economic pressures. Yet, such interpretations risk overlooking its longer strategic horizon. What may be taking shape is the gradual construction of China as one of the world's anchors of demand.

If this trajectory consolidates, its implications will extend beyond trade. Investment flows, corporate strategies, innovation patterns, and even diplomatic alignments tend to follow the geography of markets. When demand shifts, influence often follows.

The distinctiveness of the Chinese approach may lie precisely in its effort to avoid a trap that has marked several mature economies: the erosion of productive dynamism through excessive financialization. China does not appear inclined to choose between industry and consumption. Instead, it seeks to combine both under a framework of long-term coordination.

Maria Luiza Falc?o Silva is a member of the Brazilian Association of Economists for Democracy (ABED) and of the Brazil-China Group on Climate Change Economics (GBCMC) at Neasia/University of Brasília (UnB).

The views don't necessarily represent those of China Daily.

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