Washington: Recent statements by U.S. officials accusing China of "flooding" global markets with exports and calling for a "rebalancing" of its economy are being scrutinized as recycled arguments without considering the significant changes in China's economic development.
According to Namibia Press Agency, these claims reflect a Cold War mentality and zero-sum thinking, driven more by political motives than economic logic. In reality, domestic consumption has become the primary engine of China's economic growth. In the first half of 2025, internal demand contributed 68.8 percent to GDP growth, with consumption alone accounting for over half. Last year, consumption surpassed net exports and investment as the main growth engine.
China's trade structure is also improving, with total goods trade rising 6.1 percent year-on-year in the first half of the year. General trade, characterized by longer value chains and higher added value, accounted for 65 percent of total imports and exports. Mechanical and electrical products made up about 60 percent of China's exports, with high-tech items such as electric vehicles, industrial robots, and integrated circuits experiencing strong growth.
Despite global uncertainties, China remains attractive for foreign investment. Over 30,000 new foreign-invested enterprises were established in China during the first half of the year, marking an 11.7 percent increase year-on-year. Foreign investment is shifting toward high-tech industries, with significant increases in sectors like e-commerce services, pharmaceutical manufacturing, aerospace, and medical equipment.
The narrative that China is responsible for America's trade imbalance is challenged by the fact that many goods exported from China to the U.S. use parts imported from other countries, with a large share coming from American companies operating in China. These are counted as Chinese exports but benefit U.S. firms.
American multinational companies have experienced strong growth from their overseas operations, often earning more abroad than domestically. Traditional trade statistics often miss this, overstating the U.S. trade deficit and obscuring who truly benefits from globalization-primarily the wealthy, not ordinary Americans.
Critics argue that U.S. officials should focus on domestic structural imbalances that pose risks to both the American public and the global economy. A key issue lies in the "high consumption, low savings" economic model, with personal savings rates declining amid rising living costs and household debt. Federal savings have deteriorated sharply as budget deficits balloon, with the U.S. posting near-historic high deficits outside the pandemic years.
Another longstanding issue is America's debt-fueled growth model. National debt has soared from 3.2 trillion dollars in 1990 to nearly 37 trillion dollars today, with interest payments on the debt now exceeding annual defense spending.
The financialization of the American economy since the 1970s has led to deindustrialization, shifting focus from manufacturing and trade toward finance. Loosely regulated financial markets have resulted in the overexpansion of virtual capital, while the real economy has become increasingly hollowed out, deepening trade imbalances and making the U.S. economy more fragile.
The notion that China's economy is "unbalanced" is viewed as a political narrative to justify pressure on China, with claims repeatedly failing the test of reality. History, it is argued, will show that such accusations cannot halt China's economic progress, nor can they obscure the truth indefinitely.