China Defends State-Led Economic Model Ahead of Trade Talks

China is firmly defending its state-led economic model, which prioritizes advanced manufacturing over consumer spending, as it prepares for upcoming trade discussions with the European Union and the United States, Reuters reported.

Chinese President Xi Jinping continues to defend Beijing's state-led economic strategy ahead of trade negotiations.

Chinese President Xi Jinping and U.S. President Donald Trump are expected to hold additional face-to-face meetings later this year, while the European Union has set an October deadline for Beijing to address ongoing trade disputes.

A paper published by the Bank of Italy estimated that domestic factors—including weak consumer spending and industrial overcapacity—accounted for about 75 percent of China's export growth.

Western governments have criticized China's industrial policies, arguing they favor manufacturers over households and result in low-cost exports that distort global competition.

According to The Japan Times, Western officials contend that China's policies amount to mercantilism and undermine international trade rules by flooding overseas markets with inexpensive goods.