China’s Consumption Conundrum: Can Rebalancing Save Its Economy?

NEW YORK, September 30, 2026 — In this debate presented by the Asia Society Policy Institute’s Center for China Analysis (CCA), Lizzi C. Lee, fellow on Chinese economy at Center for China Analysis, moderates a discussion between Nicholas R. Lardy, nonresident senior fellow at the Peterson Institute for International Economics, and Daniel H. Rosen, partner and co-founder of Rhodium Group. Together, they examine the evidence behind one of the most consequential debates about China’s economic future: how much China really needs to consume, how much rebalancing has already taken place, and where the limits of its current growth model ultimately lie. Jing Qian, Vice President of Asia Society and Co-Founder & Managing Director for CCA, gave opening remarks. China’s low household consumption is frequently cited as a defining imbalance in its economy, and evidence that its investment- and production-led growth model has reached its limits. But how large is that imbalance in reality? Has China already made more progress toward consumption-led growth than commonly recognized? And does sustainable rebalancing require a fundamental redistribution of resources toward households—or can continued investment, manufacturing, technological upgrading, and productivity growth remain viable engines of the Chinese economy? Subscribe for more videos like this: http://AsiaSociety.org/YouTube --- Support Asia Society today: http://AsiaSociety.org/Donate --- Subscribe to our newsletter to stay connected: https://asiasociety.org/email-subscri... --- Facebook:   / asiasociety   Instagram:   / asiasociety   Twitter:   / asiasociety   LinkedIn:   / asia-society   #ChinaEconomy #EconomicRebalancing #ChinaConsumption #asiasocietynewyork #asiasocietypolicyinstitute 00:00 – Opening Remarks 05:20 – Introduction 08:37 – Discussion/Debate 47:26 – Audience Poll 49:09 – Q&A