Zhang Bin, deputy director at the Institute of World Economics and Politics, Chinese Academy of Social Sciences, said at the Tsinghua Wudaokou Chief Economist Forum on Sept. 19 that China’s main imbalance is an aggregate supply–demand mismatch—supply outstrips demand. He identified weak business and household expectations as the core cause, creating a self‑reinforcing negative cycle; he called this a market failure that requires forceful external intervention and said the most effective response

Zhang Bin, deputy director at the Institute of World Economics and Politics, Chinese Academy of Social Sciences, said at the Tsinghua Wudaokou Chief Economist Forum on Sept. 19 that China’s main imbalance is an aggregate supply–demand mismatch—supply outstrips demand. He identified weak business and household expectations as the core cause, creating a self‑reinforcing negative cycle; he called this a market failure that requires forceful external intervention and said the most effective response is to scale up countercyclical policy.