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China's Ministry of Commerce Refutes "Domestic Demand Shortage" Claim, Cites 93% Domestic Contribution to Growth

2026-07-28 05:05:02

On July 28, China's Ministry of Commerce released an official statement refuting the claim that insufficient domestic demand caused industrial overcapacity. According to the statement, domestic demand contributed an average of 93% to China's economic growth from 2013 to 2024. The ministry noted that China's total retail sales of consumer goods in 2025, measured at purchasing power parity, equaled 1.7 times the U.S. level, making it the world's largest consumer market by volume. The statement characterized the argument linking slow retail growth to weak domestic demand as misrepresenting macroeconomic conditions.

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