Dr. Keyu Jin delivered a timely analysis of the current economic paradigm shift during her 26 March talk. The renowned economist outlined a new age where protectionism, polarization and political agendas actively reshape economic systems.

In this new landscape, Hong Kong must redefine its role amid U.S.-China tensions. Jin said Hong Kong could serve as a strategic bridge in a multipolar world, leveraging its unique position to connect different economic blocs. 

Central to the discussion was examining China’s economic model, particularly the “mayor economy” concept. This model has driven significant growth and innovation in China through local government initiatives that foster industrial development. However, it has also contributed to some of the country’s economic challenges today.

While China has excelled in scaling up production – particularly in sectors like solar energy and electric vehicles – there is a notable weakness in raising domestic demand. A key challenge is China’s low consumer spending, with private consumption at just 38% of GDP – below the U.S. and South Korea due to a deep-rooted savings culture and insufficient social safety nets. To stimulate demand, she emphasized strengthening welfare systems and encouraging a consumption-oriented mindset.

Jin also pointed to China’s younger generation as a potential driver of economic revitalization. However, high youth unemployment remains a hurdle, requiring better vocational training and job-market alignment.

Her presentation also covered geoeconomics, where countries are re-evaluating their trade relationships in response to political pressures. With rising protectionism impacting global supply chains, Hong Kong’s role as a financial hub facilitating China’s international trade is more critical than ever.