However, a more positive development in the medium-term is likely to arise from the ongoing effort to rebalance the Chinese economy towards being more consumption-led, in line with the government’s efforts to reduce hardcore poverty, income inequality and regional disparities. This rebalancing may produce a net positive impact on other countries in the region by creating new sources of demand in the Chinese economy. In addition, governments will have to take action to ensure specifically that the jobs and incomes of the poorest and most vulnerable sections of society are protected during this difficult period.