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Why China is doubling down on its export-led growth model

The country plans to reinforce its dominance of global manufacturing, despite persistent deflation at home and rising tensions abroad

At a recent high-level government conference in Beijing, senior officials basked in China’s success the past year in its trade war with Donald Trump, boasting that the country’s system of state-directed planning was superior to unfettered US-style capitalism.

“Our five-year planning system ensures policy consistency and continuity — something western politicians can never achieve given their constant changes of government,” one senior cadre told the gathering of about 200 people in a central Beijing hotel.

For Beijing, the tariff war is the clearest evidence yet that President Xi Jinping’s strategy of investing heavily in high-tech production and industrial self-reliance is paying off, despite persistent deflation at home and growing complaints from abroad about soaring Chinese trade surpluses. 

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