Beijing’s push to rebalance the economy towards domestic demand is more an imperative than an ambition, as this chart shows. It tracks the bang for the export buck that emerging Asian economies get from an improvement in the economic conditions in the Group of Three economies that are still the main source of final demand – the United States, the European Union and Japan. “A rise in demand in advanced economies lifts regional exports by less than in the past,” points out HSBC economist Frederic Neumann, who tracks the data. It has been that way for about two years. If Chinese policymakers want a driver of growth, they are more likely to find it at home than abroad.
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