China 2049: Economic Challenges of a Rising Economic Power
China is on track to be the world’s next economic superpower, but it faces tremendous challenges, such as fostering innovation, dealing with an aging population, and coping with a global environment skeptical of a more powerful People’s Republic. This policy brief draws from a forthcoming edited volume — “China 2049: Economic Challenges of a Rising Global Power” (Brookings Institution Press, May 2020) — which is the result of a collaborative effort among economists from China’s Peking University and the Brookings Institution. The book will offer in-depth analyses of these challenges and explore a number of essential questions: Does China have enough talent and the right policy and institutional mix to transit from an input-driven to innovation-driven economy? What does an aging population mean for the country in terms of labor supply, consumption demand, and social welfare expenditures? Can China contain environmental and climate change risks? How should the financial system be transformed in order to continuously support economic growth and keep financial risks under control?