Constrained by economy, market system and external environment, China seems to be trapped in the vicious cycle of 'contraction – stimulation – re-contraction – re-stimulation".

ANBOUND's research team is of the view that in order to break this cycle, China should think differently and find a new direction – implement the ‘new silk road’ strategy and work with other countries to build a common market while alleviating the structural problems faced by China by transferring excess capacity and products which will in turn helps to widen the usage of RMB.

This is an important, constructive direction for China.