Professor Jun Qian Visits CGTN Dialogue to Make an In-depth Interpretation on China’s Economic Structural Transformation and Policy Responses | Info

Release time：2025-08-05    

What kind of structural difficulties are there behind the economic growth in the first half year? How can policies be precisely implemented to restore confidence and economic endogenous dynamism? How to settle the issue of expanding domestic demand and population structure over the new cycle? On the evening of July 31^st 2025, Jun Qian, Executive Dean of Fudan International School of Finance and Professor in Finance, visited the Dialogue column of China Global Television Network (CGTN) to dissect the current macro-economic situation, interpret policy signals and analyze the path for structural transformation under both internal and external challenges based on the Mid-Year Meeting of the Political Bureau of the CPC Central Committee。

Other distinguished guests in the show included David Mahon, Board Chairman of Mahon China Investment, and Warwick Powell, Senior Researcher of Taihe Institute.

Professor Introduction

Jun Qian

Executive Dean of Fudan International School of Finance

Professor in Finance

Professor Jun Qian pointed out that in the first half of 2025, China has witnessed a GDP growth of over 5%, with its foreign trade (especially export) outperforming expectation, which is quite an achievement, manifesting the resilience of Chinese economy and the continual tendency of gradual rebound. However, he also admitted that there still exist certain structural difficulties behind the growth, such as uneven recovery of consumption and the not yet fully resolved risk of real estate and local debts, which all refrained the endogenous dynamism of sustainable economic growth.

In face of such challenges, the next measure China should take is to “focus on the priorities”: since the late September last year, the state has initiated large-scale fiscal and “moderately loose” monetary policy support. Qian held that apart from the total “volume” to be stimulated, another key is whether the capital can be used precisely and efficiently. He stressed that issues involving real estate and local debts require more precise judgement in implementation so that the capital can be guided to the places (and programs) it belongs to.

In terms of domestic demand expansion, Professor Jun Qian noted that the consumption potential of special groups is worth attention, such as the “non-resident” labor group in cities. Many “wage earners” tend to restrain their purchasing power due to a lack of social and public service guarantees. He advised to effectively motivate the consumption potential and vitality of these people.

The development of service consumption industries is (one of) the new growth points to boost consumption. Finance, law, education and other high value-added services can not only create job opportunities, but are also conducive to optimizing the consumption structure. He reckoned that future policies should focus more on the institutional construction in the service sector and improve the supply capacity by allowing more types of enterprises to participate in (industrial) competition.

Local governments is a key part to push forward the aforementioned transformation. Using Shanghai as an example, Professor Jun Qian mentioned that challenged by the increasingly severe population structure problem, local governments can establish more positive policy goals and support standards, such as raising childcare allowances (on the basis of the national standards) and encouraging young families to stay in the city through institutional incentives in order to uplift the long-term economic vitality.

Generally, Professor Jun Qian held an optimistic attitude towards the comprehensive recovery and sustainable development of Chinese economy. He believed that in the essential stage of global pattern reshaping, China should first ensure high-quality development in stability and seize new opportunities in transformation, rather than pursuing forced acceleration.