Subsidizing tourism services is unlikely to meaningfully lift China's consumption share of GDP (still ~40% vs Japan's 60% and the US's 70%) because the structural problem is household balance sheets; a durable rebalancing requires stronger social security, more reliable pensions, and demographic solutions rather than more school holidays.
causalpending
Speaker
Alice HanEvidence Quote
“consumption share of GDP that is it's still around 40%, Japan's at 60%, the US is 70%... That probably will require more structural solutions [36:05]”
Source
How Much BIGGER Can China’s Trade Surplus Get? | China Decode— The Prof G Pod – Scott GallowayCreated: 6/18/2026, 1:57:55 PM
My Notes
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