On June 27th, the 14th World Economic Forum Annual Meeting of the New Champions 2023 (also known as the “Summer Davos Forum”) takes place in Tianjin. During the meeting, NBD had an interview with economist Jin Keyu who is also a professor at the London School of Economics.

Participating in the offline Summer Davos Forum in China, Jin Keyu felt that many people still have a confident outlook on China and are eager to learn more information through this activity. In her opinion, China has a lot of room for cooperation with other economies and will be a global financial stabilizer in the future.

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In an era of post-pandemic and intensified geopolitical conflicts, Jin Keyu believes that global economies should emphasize cooperation rather than advocating for deglobalization or risk-taking to meet challenges.

Jin Keyu received her bachelor’s, master’s and doctoral degrees from Harvard University and later taught at the London School of Economics. Her main research direction is globalization and the Chinese economy. She has published several articles on international macroeconomics and the Chinese economy in top economics journals and served as an editor of the Journal of Economic Research Review. In addition, Jin Keyu has also worked for institutions such as the World Bank, International Monetary Fund, and New York Federal Reserve Bank.

In addition to academic research, Jin Keyu also writes articles in international mainstream media such as The New York Timesand Financial Times. Recently, she published a new book called “The New China Playbook” which attempts to objectively and comprehensively introduce China’s economic growth while clarifying common misunderstandings about China’s economy in the Western world.

NBD: What are your new feelings about this conference? What are your expectations?

Jin Keyu: First of all, it seems that there is no feeling of strangeness compared to four years ago. I feel that it is very closely connected, which surprised me. Secondly, I saw that many people still have a positive outlook on China and are eager to learn more information. Finally, Davos Forum is a cooperative platform, so I hope more voices of win-win cooperation can be heard to suppress negative effects such as division or deglobalization.

I hope this year’s Davos can increase communication and increase everyone’s understanding of China. Because foreign friends have not come to China for several years, I hope this year’s Davos can leave them with a positive and open impression so that they can come to China more often for business cooperation and exchange.

NBD: Your research focuses on international capital flows and the Chinese economy. How do you think the two affect each other?

Jin Keyu: Although China has formed deep cooperation with other countries in global trade since joining the WTO in 2001, there is still much room for connection and communication between China and other economies in terms of economic and financial aspects. As the world’s second-largest economy, China can play the role of a financial stabilizer in the future. Of course, this requires cooperation between China and the United States, as well as between central banks, to provide more liquidity to developing countries and solve their debt problems.”

NBD: What is your take on recent developments in Sino-US relations?

Jin Keyu: Blinken’s recent visit to China released a positive signal. There is great room for cooperation between China and the United States, and both sides need to communicate and coordinate more because competition and cooperation are complementary.

NBD: Where do you think the growth points of the global economy are in the post-epidemic era?

Jin Keyu: On the one hand, the global economic growth point may focus on a new round of technological revolution, including AI and ChatGPT, new energy, etc., but we are still in the exploration stage now, and there are still some uncertainties.

On the other hand, 80% of the world’s population still lives in developing countries although they are currently facing sluggish economy and debt problems after the epidemic. From this perspective, growth points should still be in developing countries. However, it is crucial to help them overcome difficulties and restore normal economic growth trends."

NBD: There seems to be no end in sight of the Russia-Ukraine conflict. Under geopolitical turmoil, what other serious challenges does the global economy face?

Jin Keyu: Different economies face different challenges. On the one hand, slow growth and high inflation in Western countries are serious problems that cannot be solved in a short time. On the other hand, it is very likely that new generations of technological revolution will make it impossible for developing countries to achieve medium or upper-middle-income levels.

Most importantly, all economies around the world should cooperate rather than emphasize deglobalization or risk reduction because this is a very dangerous concept.

NBD: Under geopolitical conflicts and other factors, the international status of the US dollar has been impacted. What is your view on this?

Jin Keyu: The international status of the US dollar comes not only from its wide application scenarios but also from its inclusiveness in financial markets. It has certain leadership in terms of breadth, depth, and liquidity. Therefore, at present, the US dollar will still play a very important role globally because no other economy has a mature financial system to replace its role in global investment financing and trade.

Considering geopolitical factors, many countries also consider bypassing US dollars for international settlements. This is a long process. Although the international status of US dollars is declining, it still plays an important role."