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Policy Brief 13-2
A Blueprint for Rebalancing the Chinese Economy
by Nicholas R. Lardy, Peterson Institute for International Economics
and Nicholas Borst, Peterson Institute for International Economics
February 2013
The task of economic rebalancing is likely to demand much of the new Xi Jinping–Li Keqiang administration's energy and attention. Rebalancing entails implementation of large changes to fundamental economic policies, such as removing lingering price controls and opening up the closed financial system. It will also bring about a shift away from the economic winners of the past decade, namely manufacturers and property developers, towards private consumers and the service sector. Despite these challenges, rebalancing can be achieved while sustaining moderately fast economic growth.
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