Keyu Jin, the leading London-based economics speaker, outlines China’s “skewed” growth model

Keyu Jin speakerWriting in Project Syndicate, Keyu Jin, a professor of economics at the London School of Economics, makes the case that whilst economists have a reason to be worried about China’s economy, what many fail to recognise is that there is a single underlying problem: China’s “skewed” growth model.

Keyu argues that the “model is, to some extent, a policy-induced construct, the result of a deep-rooted bias toward construction and manufacturing as the leading drivers of economic development.” These large-scale manufacturing and infrastructure projects are encouraged by direct and indirect government subsidies, a model that carries considerable costs and locks “China in a vicious economic circle.”

According to Keyu, restructuring the economy is thus perhaps the most urgent challenge facing China’s leaders today. Given that the current distortions are interlinked, she believes that they may need to be addressed simultaneously.

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