At the World Economic Forum’s “Summer Davos” meeting in Tianjin last month, Premier Li Qiang said that China is evolving into a “mega-sized consumption powerhouse”. This was more than a rhetorical flourish. It marked a reaffirmation of Beijing’s long-standing ambition to change its growth model, placing domestic demand, rather than exports or real estate, at the heart of the economy.
This vision is not new. Policymakers have been talking about rebalancing for over a decade. But the timing of…