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What is China’s Ace in the Hole When External Turbulence Strikes?

Apr 17-2026   



*This article is based on an interview with J.Y. Lin, member of the Standing Committee of the National Committee of the CPPCC and Vice Chairman of the Economic Affairs Committee; Dean of the Institute of New Structural Economics and Honorary Dean of the National School of Development, Peking University.

On the Big Picture: Steadfastly Navigating as a Mighty Vessel Amid Raging Storms

“In today’s world, a once-in-a-century transformation is accelerating.” Shortly after the interview began, J.Y. Lin outlined the current macroeconomic landscape. He candidly noted that the intertwining of geopolitical conflicts and technological revolutions has shaken the existing global governance system, while external demand has slowed. These are the “headwinds” that all nations must face.

In response to a reporter’s question, J.Y. Lin used the metaphor of a “mighty vessel” to describe China’s position in the current stormy global landscape: “Small boats bob violently in the waves, but large ships can ride the wind and cut through the waves as long as they do their job well.”

He referred to the “advantage of the large ship” as stemming from China’s characteristics as a super-large economy: abundant talent, a vast market, a comprehensive industrial base and sound institutions. He pointed out that China still possesses enormous growth potential. This assessment is based on the “latecomer’s advantage”, the opportunities presented by the new industrial revolution and the “talent advantage” accumulated from the fact that China produces more than 5 million STEM (science, technology, engineering and mathematics) graduates each year.

“I believe China’s contribution to global economic growth will be greater than ever before.” Even as the global economy sinks into the quagmire of “secular stagnation”, J.Y. Lin believes that China remains the most stable source of momentum.

Tackling Challenges: Confidence is Key to Unleashing Consumption

The Government Work Report, which is currently under review, lists “building a robust domestic market” as the top priority among this year’s key tasks. It also proposes formulating and implementing plans to increase the income of urban and rural residents, as well as rolling out a series of practical measures to boost the income of low-income groups, increase residents’ property income and improve salary and social security systems. J.Y. Lin stated that a two-pronged approach is needed to stimulate consumption: first, improving income distribution through income-boosting plans, and second, helping people to identify new opportunities.

He believes that China not only possesses leading large-scale models, but also a complete industrial chain. Just as new energy vehicles have enabled us to “change lanes and overtake”, traditional industries can similarly improve quality and efficiency through intelligent, green transformation. When people see these tangible opportunities and develop stable expectations for the future, they will be more willing to consume.

A Long-term Perspective: Population Aging & the Quality Dividend

J.Y. Lin offers a different perspective on the issue of population ageing. Through his research on over 50 countries that have entered an ageing society, he discovered that economic growth actually accelerated in nations that “aged before they became wealthy” after entering the ageing phase.

“This is a trend that has been recognized for many years, and governments and societies have been preparing for it,” he explained. The key to addressing this challenge lies in “effective labour” — that is, the quantity of the labour force multiplied by its quality (level of education). Improving effective labour further facilitates technological innovation and industrial upgrading. At the same time, J.Y. Lin believes that ageing is creating a new sector: the “silver economy”. Every adjustment to the supply side creates a new source of economic growth.


What is China’s Ace in the Hole When External Turbulence Strikes?

Apr 17-2026   



*This article is based on an interview with J.Y. Lin, member of the Standing Committee of the National Committee of the CPPCC and Vice Chairman of the Economic Affairs Committee; Dean of the Institute of New Structural Economics and Honorary Dean of the National School of Development, Peking University.

On the Big Picture: Steadfastly Navigating as a Mighty Vessel Amid Raging Storms

“In today’s world, a once-in-a-century transformation is accelerating.” Shortly after the interview began, J.Y. Lin outlined the current macroeconomic landscape. He candidly noted that the intertwining of geopolitical conflicts and technological revolutions has shaken the existing global governance system, while external demand has slowed. These are the “headwinds” that all nations must face.

In response to a reporter’s question, J.Y. Lin used the metaphor of a “mighty vessel” to describe China’s position in the current stormy global landscape: “Small boats bob violently in the waves, but large ships can ride the wind and cut through the waves as long as they do their job well.”

He referred to the “advantage of the large ship” as stemming from China’s characteristics as a super-large economy: abundant talent, a vast market, a comprehensive industrial base and sound institutions. He pointed out that China still possesses enormous growth potential. This assessment is based on the “latecomer’s advantage”, the opportunities presented by the new industrial revolution and the “talent advantage” accumulated from the fact that China produces more than 5 million STEM (science, technology, engineering and mathematics) graduates each year.

“I believe China’s contribution to global economic growth will be greater than ever before.” Even as the global economy sinks into the quagmire of “secular stagnation”, J.Y. Lin believes that China remains the most stable source of momentum.

Tackling Challenges: Confidence is Key to Unleashing Consumption

The Government Work Report, which is currently under review, lists “building a robust domestic market” as the top priority among this year’s key tasks. It also proposes formulating and implementing plans to increase the income of urban and rural residents, as well as rolling out a series of practical measures to boost the income of low-income groups, increase residents’ property income and improve salary and social security systems. J.Y. Lin stated that a two-pronged approach is needed to stimulate consumption: first, improving income distribution through income-boosting plans, and second, helping people to identify new opportunities.

He believes that China not only possesses leading large-scale models, but also a complete industrial chain. Just as new energy vehicles have enabled us to “change lanes and overtake”, traditional industries can similarly improve quality and efficiency through intelligent, green transformation. When people see these tangible opportunities and develop stable expectations for the future, they will be more willing to consume.

A Long-term Perspective: Population Aging & the Quality Dividend

J.Y. Lin offers a different perspective on the issue of population ageing. Through his research on over 50 countries that have entered an ageing society, he discovered that economic growth actually accelerated in nations that “aged before they became wealthy” after entering the ageing phase.

“This is a trend that has been recognized for many years, and governments and societies have been preparing for it,” he explained. The key to addressing this challenge lies in “effective labour” — that is, the quantity of the labour force multiplied by its quality (level of education). Improving effective labour further facilitates technological innovation and industrial upgrading. At the same time, J.Y. Lin believes that ageing is creating a new sector: the “silver economy”. Every adjustment to the supply side creates a new source of economic growth.