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Taking Pulse of New Challenges

Aug 30-2020   



The 146th edition of Langrun Policy Talk, a long-running and much-followed event of the NSD, featured speeches of Prof. Yao Yang and Prof. Huang Yiping, respectively Dean and Deputy Dean of the NSD, and Prof. Zha Dongjiong of the School of International Studies of Peking University. They then joined roundtable discussions hosted by Mr. Wang Xun, associate research fellow with the NSD, on issues related to the new environment and challenges for the Chinese economy.

 

Despite the headwind, are there favorable conditions? Prof. Zha said that two stand out: For one, manufacturing accounting for around 36% of the Chinese economic output, perhaps the highest ratio in the world. This means China’s industrial chains have a rather solid foundation to run on. For the other, it’s time for China to brace for some tough years ahead and find momentum to grow, as some Western countries are bent on ‘doing subtraction’ in their relationships with China.

 

With regard to the middle-income trap, Prof. Huang believed China enjoys a high probability of overcoming it even though its growth rate will slow down in the coming years. The real question, he said, is whether China can keep on increasing its income level after becoming a high-income country. To further support economic growth, which has entered into an innovation- and quality-oriented stage, the finance industry is in need of reforms, one of which should aim to make financing for medium, small and micro-enterprises more robust and more marketized.

 

On the issue of ‘double economic cycles’, Prof. Huang agreed with the viewpoints of the other two professors and said that it’s of vital importance not to split the two cycles, even though much emphasis has been put on the domestic one. If there’s anything special about the domestic economic cycle, it should be about the need to beef up domestic consumption. In a communique of the Political Bureau, domestic economic cycle is slated to use consumption as the base point. The other sectors should continue to take advantage of both domestic and international economic cycles, he said.

 

Other topics in the roundtable discussions included COVID-19 vaccines, digital finance, and institutional reforms, among others.

Taking Pulse of New Challenges

Aug 30-2020   



The 146th edition of Langrun Policy Talk, a long-running and much-followed event of the NSD, featured speeches of Prof. Yao Yang and Prof. Huang Yiping, respectively Dean and Deputy Dean of the NSD, and Prof. Zha Dongjiong of the School of International Studies of Peking University. They then joined roundtable discussions hosted by Mr. Wang Xun, associate research fellow with the NSD, on issues related to the new environment and challenges for the Chinese economy.

 

Despite the headwind, are there favorable conditions? Prof. Zha said that two stand out: For one, manufacturing accounting for around 36% of the Chinese economic output, perhaps the highest ratio in the world. This means China’s industrial chains have a rather solid foundation to run on. For the other, it’s time for China to brace for some tough years ahead and find momentum to grow, as some Western countries are bent on ‘doing subtraction’ in their relationships with China.

 

With regard to the middle-income trap, Prof. Huang believed China enjoys a high probability of overcoming it even though its growth rate will slow down in the coming years. The real question, he said, is whether China can keep on increasing its income level after becoming a high-income country. To further support economic growth, which has entered into an innovation- and quality-oriented stage, the finance industry is in need of reforms, one of which should aim to make financing for medium, small and micro-enterprises more robust and more marketized.

 

On the issue of ‘double economic cycles’, Prof. Huang agreed with the viewpoints of the other two professors and said that it’s of vital importance not to split the two cycles, even though much emphasis has been put on the domestic one. If there’s anything special about the domestic economic cycle, it should be about the need to beef up domestic consumption. In a communique of the Political Bureau, domestic economic cycle is slated to use consumption as the base point. The other sectors should continue to take advantage of both domestic and international economic cycles, he said.

 

Other topics in the roundtable discussions included COVID-19 vaccines, digital finance, and institutional reforms, among others.