Kathrine Frich
They call it the American “high consumption, low savings” model.
They call it the American “high consumption, low savings” model.
China Hits Back at U.S. Over Trade Criticism
Beijing is rejecting U.S. claims that China is flooding the world with cheap exports, calling the accusations “recycled arguments” based on outdated thinking.
In a statement published by state-run Xinhua, Chinese officials argue the U.S. is “deflecting attention from its own deep-rooted economic flaws.”
“High Consumption, Low Savings”
The article mocks what it calls the American “high consumption, low savings” model.
It points to declining household savings, ballooning personal debt, and a reliance on spending-driven growth as symptoms of long-term imbalance in the U.S. economy.
Beijing: America’s Economic Model Endangers the World
According to China, the real global risk lies in the U.S.’s massive national debt and widening federal deficits.
With interest payments now exceeding military spending, Beijing argues that this debt-fueled system is not only unsustainable but dangerous to the global economy.
Domestic Demand Now Drives Chinese Growth
China says its own economy is shifting toward domestic consumption and high-quality growth. In the first half of 2025, local demand contributed nearly 69% to GDP growth, more than exports or investment.
Consumption alone made up over half of all growth.
China Highlights Gains in High-Tech Trade
Chinese exports are no longer dominated by low-cost goods, the article claims.
Instead, the country is seeing fast growth in sectors like electric vehicles, robotics, and integrated circuits.
Mechanical and electrical goods now make up about 60% of China’s exports.
Foreign Investment Still Pouring Into China
Despite geopolitical tensions and a slow global recovery, China claims it remains a magnet for foreign investment.
Over 30,000 new foreign-backed companies were registered in the first half of 2025, with an 11.7% rise in investments focused on high-tech and advanced industries.
U.S. Trade Deficit Is Misleading, China Argues
Beijing claims that many “Chinese exports” to the U.S. are actually made using parts from other countries or by U.S. companies operating in China.
As a result, the trade deficit overstates the impact of Chinese trade and ignores how American firms benefit from the current system.
Deindustrialization Blamed for U.S. Weakness
China’s response points to the U.S.’s shift away from manufacturing toward finance since the 1970s.
It accuses America of hollowing out its real economy in favor of speculative financial activity, worsening inequality and weakening long-term economic health.
