Economist Lan Xiaohuan outlines China’s consumption challenges and strategic shifts

Lan Xiaohuan, economics professor at China Europe International Business School, discussed the delicate balance required to stimulate Chinese consumption. He emphasized that a more robust social safety net is essential to support household spending. Domestically, the collapse of the real-estate market contrasts with a surge in manufacturing and high-tech industries.

Internationally, the lingering effects of the pandemic, the war in Ukraine, energy shocks linked to Iran, and shifting U.S. political dynamics are the most consequential influences on China’s trajectory. While China’s internal baseline stays steady, these external pressures demand new policy frameworks. Xiaohuan suggested that addressing these issues may warrant an entirely new book rather than a simple chapter addition.