Zhang Bin, a researcher and deputy director of the Institute of World Economics and Politics of the Chinese Academy of Social Sciences, said at the Tsinghua Wudaokou Chief Economists' Forum on September 19 that the main current imbalance in China's economy is strong supply and weak demand; this is a total imbalance. “There are many reasons for insufficient demand, but the most important one is that the expectations of business entities are weak, and enterprises and residents are afraid to invest or spend money. Individual behavior is rational and reasonable, but the superposition of microscopic behavior forms a negative self-amplification mechanism, forming a negative cycle.” Zhang Bin said. Zhang Bin believes that to break the critical foothold of insufficient demand, we must first break the negative cycle. The negative cycle itself is a market failure. Strong external forces are needed to break the negative cycle. The most effective tools are to increase countercyclical adjustment efforts.

Zhang Bin, a researcher and deputy director of the Institute of World Economics and Politics of the Chinese Academy of Social Sciences, said at the Tsinghua Wudaokou Chief Economists' Forum on September 19 that the main current imbalance in China's economy is strong supply and weak demand; this is a total imbalance. “There are many reasons for insufficient demand, but the most important one is that the expectations of business entities are weak, and enterprises and residents are afraid to invest or spend money. Individual behavior is rational and reasonable, but the superposition of microscopic behavior forms a negative self-amplification mechanism, forming a negative cycle.” Zhang Bin said. Zhang Bin believes that to break the critical foothold of insufficient demand, we must first break the negative cycle. The negative cycle itself is a market failure. Strong external forces are needed to break the negative cycle. The most effective tools are to increase countercyclical adjustment efforts.