In part, this reflects a welcome policy-induced slowdown from the increasingly unsustainable rates of growth in recent years. With large vulnerabilities building in the housing sector, evidence of overinvestment increasing, and inflation above target, Chinese policy-makers appropriately responded by tightening monetary and macroprudential policies. Less anticipated has been the extent to which weaker external demand, especially from Europe, has weighed on export growth.
The product innovations have not focused on customer requirements and have, instead, aimed at serving the interests of the service provider. The basic fact, that the well-being of the consumer is essential for the sustainability and growth of the service provider, has been lost sight of.