As developed-country citizens have become increasingly frustrated with this state of affairs, politicians – in particular, US President Donald Trump – have attempted to appease them with immigration restrictions and protectionist trade measures. But while this might temporarily satisfy some segments of these countries’ populations, it will ultimately make matters worse, by curbing global demand, exacerbating structural imbalances (including trade imbalances), and eventually leading to recession for all.





All of this has significant implications for China, which has become the primary target of the Trump administration’s tariffs, amid accusations that it is responsible for global excess production capacity. In this context, it is more urgent than ever that China curbs its reliance on foreign demand and high levels of investment, by fostering sustainable domestic consumption. Success will hinge on China’s continued use of what we call the “BREEP methodology,” whereby policymakers browse, research, experiment, evaluate, and push forward what works, continually refining and adapting their tools and tactics.



