China’s reliance on exports, falling domestic consumption hurting ‘entire world’ US Treasury report

News Snapshot:

China’s economy, built on an unsustainable model of a growing trade surplus—now at a record high of nearly $1 trillion—and declining domestic consumption, is not only harming itself but also the “entire world”, a US Treasury report released Friday said. It suggested Beijing to boost household consumption and reduce the “negative spillovers” of its policies on trading partners. The observations of the US treasury on the Chinese economy assumes significance as Indian manufacturing continues to struggle to compete with Chinese imports, with the goods trade deficit crossing a record $100 billion. This comes despite large-scale use of anti-dumping duties and...