Original Author: Yao Yang
Yao Yang, dean of the National School of Development (NSD) at Peking University, identifies three near-term challenges to China’s economic development. The first two—insufficient consumer demand and declining interest in real estate purchases — have both been affected by declining consumer confidence amid the COVID-19 pandemic and ensuing lockdown measures. The third challenge is the risk of recession in key export markets such as the United States and Europe, which may negatively affect Chinese exports. To address these challenges, Yao emphasizes the importance of policies designed to stabilize the real estate market, as well as measures to shore up consumer confidence (which he calls “more precious than gold”), such as direct payments to Chinese citizens. Yao suggests that Beijing should lead by example and implement a more “rational” approach to COVID-19 prevention and control. This speech was delivered to the China Economic Observation (CEO) conference just prior to the November 2022 protests across China opposing the Chinese government’s “dynamic zero-COVID” measures.
How can China overcome the middle-income trap? In this 2016 speech, Yao Yang, Dean of the National School of Development of Peking University, identifies what he sees as critical ingredients for avoiding this trap, and argues China should understand these as it aims to become a “high-income country by the centennial of the country’s founding.” He also seeks to dispel what he sees as several widely-held misunderstandings about China’s economic growth challenges.
This interview with a leading Chinese economist discusses the need for, and goals of, Common Prosperity based on current and desired economic indicators; he weighs actions such as property and inheritance taxes, citizen donations, and education reform.