Illustration: Xia Qing/GT
Western media outlets have recently been keen to hype the narrative that China prioritizes industry over consumption. The latest example is a Reuters report on Monday, headlined "China draws 'red lines' around its economic model ahead of EU, US trade talks," which claimed that "China is energetically defending its economic policy mix that favors advanced industries over consumption."
Such a narrative is not only a serious misinterpretation of China's industrial policies but also a tactic adopted by the West to deflect blame for its own trade protectionism.
A simple review of China's economic policies reveals that expanding domestic demand has always been a strategic cornerstone. In recent years, China has rolled out tangible measures to boost domestic consumption, including large-scale equipment upgrade and consumer goods trade-in programs, optimized tax deductions and exemptions, improved social security systems, and new consumption scenarios.
Statistics show that final consumption expenditure contributed 58.8 percent to economic growth during the 14th Five-Year Plan (2021-25) period. At the same time, China repeatedly cut tariffs on imported consumer goods and expanded its cross‑border e‑commerce retail import list. These indicators collectively prove that China is a booming "world market" with vast potential. To portray such a country as one that downplays consumption is a deliberate distortion. China's economic policymaking pursues a virtuous cycle in which industrial upgrading and consumption enhancement reinforce each other.
Then, why, at a time of tensions in both EU‑China and US‑China trade ties, are Western media outlets so keen to stick China with the "weak consumption" tag? The answer is not complicated. When certain countries are preparing to impose tariffs and erect barriers against China's industries, they need a seemingly legitimate justification. By casting China as an economy that "only produces but does not consume," they can stigmatize China's industrial competitiveness as "subsidy‑dependent" or "unfair." But such deliberate distortion, designed to deflect blame for protectionism, not only fails to resolve the West's own industrial and trade imbalances but also undermines the atmosphere for trade dialogue and further destabilizes global supply chains.
Adding to the distortion, some media outlets have even misrepresented China's legitimate actions to safeguard its own rights and interests as "trade defiance." China has the right to defend its interests after being hit with unreasonable extra tariffs or other protectionist measures, and after its competitive industries were targeted under the baseless pretext of "overcapacity." On issues that touch a country's development foundation, industrial security and long-term interests, there is naturally no space for compromise.
Yet, clarifying one's stance and protecting core interests does not mean closing the door to cooperation. On the contrary, China has consistently demonstrated a constructive attitude toward collaboration on a wide range of issues, including climate change, global supply chain stability, green transition, and many other broad issues.
As the world's second-largest consumer market, China's consumption demand is upgrading continuously. Numerous European and American companies have long rooted their businesses in China. They have a far more firsthand experience of China's market potential than biased Western media outlets, and no forward-looking company will easily abandon such a vast and promising market.
Therefore, China remains confident and patient in responding to external misinterpretations with tangible development achievements, and will keep resolving differences and pursuing win-win cooperation with all parties through pragmatic communication.