Economist Lan Xiaohuan on China's Consumption and Geopolitical Shifts

In a recent exclusive interview, Lan Xiaohuan, an economics professor at China Europe International Business School and the acclaimed author of 'How China Works: An Introduction to China’s State-led Economic Development,' examines the complexities involved in enhancing consumption in China. He points out the downturn in the real estate sector and the swift growth of manufacturing and technology as notable domestic transformations. However, he emphasizes that the most impactful changes are external, citing the pandemic, the Russia-Ukraine conflict, energy disruptions linked to Iran, and evolving political circumstances in the U.S. Lan proposes a new framework to tackle these challenges and expresses his intention to write a completely new book. He advocates for a more robust social safety net and explores how public data infrastructure influences the AI competition with the U.S., while also addressing the economic factors behind China’s unprecedented trade surplus and the necessity for a balanced consumption strategy.