Yao Yang: Long Position on Chinese Economy

Jun 03-2019   

It might be tempting to go short on the Chinese economy amid the complicated domestic and international situations. Not for Prof. Yao Yang, NSD Dean. “Looking long into the future, I don't think the Chinese economy has any problems. Its resilience trumps that of many other countries,” he says in an interview with Chang Jiang Daily, on the sideline of a recent summit co-organized by NSD in Wuhan City, in central China.

The completeness of China’s industrial system will remain an irresistible draw for foreign investors, despite its higher labor cost relative to some other developing countries. Besides, the Chinese market is too big in size to be shunned. Moreover, the Chinese government is always on the tiptoe to ensure a smooth transition and steady growth in the face of downward pressures.

He also points out that historical experiences corroborate that China can excel with its back to the wall as long as assiduous efforts are made. That said, he stresses unequivocally that China’s own research and development must go hand in hand with opening up and exchanges.

China contributes 1/3 of global growth over the last ten years. Its success lies in pragmatism and hard work, which should offer lessons for other developing countries. “In one to two generations’ time, a developing country can catch up with the world-leading ones. But there’s no shortcut. It all starts with low-end manufacturing,” he says.