China’s Rebalancing Act

China’s 12th Five-Year Plan calls for a shift in the country’s economic model from export-led growth toward greater reliance on domestic demand, particularly household consumption. But, while China’s current-account surplus as a share of GDP has indeed fallen, is the economy's adjustment on track?

BEIJING – China’s 12th Five-Year Plan calls for a shift in the country’s economic model from export-led growth toward greater reliance on domestic demand, particularly household consumption. Since the Plan’s introduction, China’s current-account surplus as a share of GDP has indeed fallen. But does that mean that China’s adjustment is on track?

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