China aims to become self-sufficient economically and shift its outward-looking approach. An article by David Lubin on Chatham House describes China’s inward-looking as bad news for the world economy. Self-reliance has been an essential principle for Chinese leaders who believe in building a great modern socialist China and act independently in all aspects of economic and political battlefields.

President Xi Jinping of China declared that they “should adhere to self-reliance, put the development of the country and nation on the basis of strength, and firmly seize the initiative in development.”

David Lubin, an associate fellow of global economy and finance programme in Chatham House, also indicates that geopolitics pushes China to become more inward-looking as Beijing looked for less economic contingent on the West after limitations imposed by the Trump administration on the country, such as tariffs and export controls. Yet, Russia-Ukraine war influences China and drives them to eagerly go for further self-reliance. Chinese leaders will put an effort to be a source for its semiconductors, food, and green energy in a few years to come.

From Beijing’s perspective, China’s private sector does not align with the Communist Party’s objectives for the country anymore, thus they seek a new system in which they allow a particular private sector in China’s economy.

If China reaches its dream of becoming a state with less dependence on importing, other countries will experience a fall in economic activity per unit of China’s GDP.