The third component symbolizes the ability of China to chart and maintain her developmental polices as a model for other countries to follow and emulate (Kennedy, 2008). Therefore, the term Beijing consensus was the sum of the five pillars of the economic policies of China over the years which included incremental reform, innovation and experimentation, export-led growth, state capitalism and authoritarianism (Williamson, 2010).
When productivity-driven wealth increases were spurring demand a few years ago, the effects on resource utilization and inflation pressures were offset in part by the effects of weakening foreign economies and a rising foreign exchange value of the dollar, which depressed exports and encouraged imports.