Report
Patrick Artus

China’s new “autarkic” economic model: What effects on the global economy?

After having had a “mercantilist” economic model where growth was driven by exports and external surpluses, China is now shifting to an economic model that can be qualified as “autarkic”: Growth is driven by domestic demand and no longer by exports; foreign trade is contracting; China does not want to rely on the rest of the world for strategic production such as technology products and services; China has capital controls and no longer accumulates foreign exchange reserves, which makes it self-sufficient not only economically but also financially. What effects does China’s economic and financial autarky have on the rest of the world? It slows global trade and leads to problems for industrial countries with open economies that are reliant on global trade; It means that China can no longer be the other pillar , alongside the United States , of the international monetary system.
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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