News Center



Home News Center News

China’s Economic Growth Good for Global Stability

Oct 11-2020   



The October 9 issue of Guang Ming Daily carries an interview with Prof. Yao Yang, Dean of the NSD, and Mr. David Dollar, senior fellow at the Brookings Institution, on a joint research project putting China’s economic growth in global perspectives.

 

China 2049: Economic Challenges of a Rising Global Power, was published during the pandemic and offers a new window for the world to understand China. Mr. Dollar says that the report aims to analyze the key issues and necessary reforms in 2049 when the People’s Republic of China will celebrate its 100-year anniversary. The project team mainly consists of economists and prefers to view development as win-win for both the Chinese people and global prosperity and stability. An abundance of consensus has been reached on important issues and reforms. He also says that the Brookings Institution has been working with Chinese researchers on various projects for many years and the partnership with the NSD is a natural extension of such a long-running tradition.

 

Prof. Yao says that 2049 marks the 100-year anniversary of the PRC as well as the time point for China to realize its second centenary goals. The research project offers policy advice based on weighing the growth potential and possible impediments. It estimates that China will maintain an annual economic growth rate of 4-4.5% in the next 30 years. China’s per capita income will reach 60% of the American one in 2029, while its total GDP will double that of the US. Within this context, the report looks into a wide range of issues such as population aging, competition and innovation policy, financial development, and the changing international environment, and presents relevant advice.

 

Mr. Dollar says that he is responsible for the analysis of China’s role in the international economic system, particularly in the WTO, the IMF, and the World Bank. He believes that as the developing countries have made unprecedented progress in income growth and poverty reduction, the international organizations should start to reform and address such issues as cross-border data flow, IPR, service trade and investment policy. He served as the US Treasury’s special envoy to China for economic and financial affairs from 2009 to 2013, facilitating bilateral dialogues on macro-economy and financial policy.

 

For the book, Prof. Yao writes on the PRC’s 70 years of development since its founding. He recaps the hard work and sacrifices made by the Chinese people in the first 30 years to lay a solid industrial foundation for the economic takeoff in the following four decades. Since 2010, he notes, the Chinese economy has entered an adjustment phase characterized by the rising ratio of domestic consumption; as a result, the economic structure has become more rational and balanced.

 

The two experts agree that China’s economic growth is conducive for global stability. The Chinese government has decided to further open up the financial service and auto industry, which is in line with the proposals in the book, says Mr. Dollar. As for the technological rivalry between China and the US, the report points to rule-based peaceful competition as the best solution. In the future, the two countries should have more discussions and negotiations to agree on a uniform set of rules for peaceful competitions, says Prof. Yao.

 

China’s Economic Growth Good for Global Stability

Oct 11-2020   



The October 9 issue of Guang Ming Daily carries an interview with Prof. Yao Yang, Dean of the NSD, and Mr. David Dollar, senior fellow at the Brookings Institution, on a joint research project putting China’s economic growth in global perspectives.

 

China 2049: Economic Challenges of a Rising Global Power, was published during the pandemic and offers a new window for the world to understand China. Mr. Dollar says that the report aims to analyze the key issues and necessary reforms in 2049 when the People’s Republic of China will celebrate its 100-year anniversary. The project team mainly consists of economists and prefers to view development as win-win for both the Chinese people and global prosperity and stability. An abundance of consensus has been reached on important issues and reforms. He also says that the Brookings Institution has been working with Chinese researchers on various projects for many years and the partnership with the NSD is a natural extension of such a long-running tradition.

 

Prof. Yao says that 2049 marks the 100-year anniversary of the PRC as well as the time point for China to realize its second centenary goals. The research project offers policy advice based on weighing the growth potential and possible impediments. It estimates that China will maintain an annual economic growth rate of 4-4.5% in the next 30 years. China’s per capita income will reach 60% of the American one in 2029, while its total GDP will double that of the US. Within this context, the report looks into a wide range of issues such as population aging, competition and innovation policy, financial development, and the changing international environment, and presents relevant advice.

 

Mr. Dollar says that he is responsible for the analysis of China’s role in the international economic system, particularly in the WTO, the IMF, and the World Bank. He believes that as the developing countries have made unprecedented progress in income growth and poverty reduction, the international organizations should start to reform and address such issues as cross-border data flow, IPR, service trade and investment policy. He served as the US Treasury’s special envoy to China for economic and financial affairs from 2009 to 2013, facilitating bilateral dialogues on macro-economy and financial policy.

 

For the book, Prof. Yao writes on the PRC’s 70 years of development since its founding. He recaps the hard work and sacrifices made by the Chinese people in the first 30 years to lay a solid industrial foundation for the economic takeoff in the following four decades. Since 2010, he notes, the Chinese economy has entered an adjustment phase characterized by the rising ratio of domestic consumption; as a result, the economic structure has become more rational and balanced.

 

The two experts agree that China’s economic growth is conducive for global stability. The Chinese government has decided to further open up the financial service and auto industry, which is in line with the proposals in the book, says Mr. Dollar. As for the technological rivalry between China and the US, the report points to rule-based peaceful competition as the best solution. In the future, the two countries should have more discussions and negotiations to agree on a uniform set of rules for peaceful competitions, says Prof. Yao.