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The Next World-Class Economic Story

Oct 22-2021   



This year marks the 20-year anniversary of China’s accession to the WTO, and the country’s new development pattern centered on ‘dual circulation’ will provide a new growth engine for the global economy, says Prof. Huang Yiping, Associate Dean of NSD and Chairman of the Academic Committee of CF40, in an exclusive media interview.

 

Due to changes of domestic and international situations, China has to rely more on domestic demand while reforming the supply side. Ideally, the new development pattern will turn China into an enormous and unified market, a headstream of high-end manufacturing and technological innovation, and an important driving force for globalization. Therefore, Prof. Huang advocates a new international economic circulation that is more extensive and more dynamic in nature.

 

The internal circulation and domestic demand might be the next world-class economic story in the making. To further spur consumption, a range of measures needs to be taken, such as speeding up the reform of the factors market, improving income distribution, enhancing social welfare system, and tapping into urbanization, all of which will contribute to residents’ income growth and their willingness to spend, says Prof. Huang.

 

Under the new development pattern, financial reforms will quicken up yet still maintain their prudent nature. Having financial stability as the bottom line, China should utilize both policy making and market demand in the opening up of the financial sector, be it capital accounts, RMB internationalization, or financial services. Internally, as the economy shifts from being input-driven to innovation driven, the financial system should make due adjustments, such as increasing the ratio of direct financing, revamping traditional financial institutions to bolster innovation activities, and taking advantage of Fintech to support local companies and medium-, small- and micro-sized enterprises. German and Japanese financial systems offer a good example of creating banking businesses to back up innovation activities, says Prof. Huang.

 

The Next World-Class Economic Story

Oct 22-2021   



This year marks the 20-year anniversary of China’s accession to the WTO, and the country’s new development pattern centered on ‘dual circulation’ will provide a new growth engine for the global economy, says Prof. Huang Yiping, Associate Dean of NSD and Chairman of the Academic Committee of CF40, in an exclusive media interview.

 

Due to changes of domestic and international situations, China has to rely more on domestic demand while reforming the supply side. Ideally, the new development pattern will turn China into an enormous and unified market, a headstream of high-end manufacturing and technological innovation, and an important driving force for globalization. Therefore, Prof. Huang advocates a new international economic circulation that is more extensive and more dynamic in nature.

 

The internal circulation and domestic demand might be the next world-class economic story in the making. To further spur consumption, a range of measures needs to be taken, such as speeding up the reform of the factors market, improving income distribution, enhancing social welfare system, and tapping into urbanization, all of which will contribute to residents’ income growth and their willingness to spend, says Prof. Huang.

 

Under the new development pattern, financial reforms will quicken up yet still maintain their prudent nature. Having financial stability as the bottom line, China should utilize both policy making and market demand in the opening up of the financial sector, be it capital accounts, RMB internationalization, or financial services. Internally, as the economy shifts from being input-driven to innovation driven, the financial system should make due adjustments, such as increasing the ratio of direct financing, revamping traditional financial institutions to bolster innovation activities, and taking advantage of Fintech to support local companies and medium-, small- and micro-sized enterprises. German and Japanese financial systems offer a good example of creating banking businesses to back up innovation activities, says Prof. Huang.