CKGSB Dean Xiang Bing delivered the opening keynote at the Penn Wharton China Summit, a prestigious event held at the University of Pennsylvania from June 17-18, 2023. The summit convened nearly 20 opinion leaders who discussed a range of topics from finance and healthcare to technology, consumption, and venture capital.
Dean Xiang kicked off the event at the opening ceremony alongside Erika James, Dean of Wharton School, delivering a keynote speech titled “Different Development Models and the Future Outlook of the Chinese Economy.” Dean Xiang emphasized that neoliberalism has contributed significantly to global economic development over the past three decades, but has brought about severe income and wealth inequality.
He subsequently outlined three pivotal factors that will shape China’s future economy. First, he referred to the pivotal role that China has played as a global driver of economic growth over the last decade. “China’s average contribution rate to world economic growth reached 38.6% from 2013 to 2021,” he said.
Second, Dean Xiang said that with the world’s second largest consumer market and the largest commodity trading country, China’s economy still has a lot of room for development – particularly through bilateral trade relations with other members of the Regional Comprehensive Economic Partnership (RCEP).
China’s economy still has a lot of room for development – particularly through bilateral trade relations with other members of the Regional Comprehensive Economic Partnership (RCEP)
He added that there is significant space for development via industry deregulation. Dean Xiang said China has approximately 30 industries dominated by central and local state-owned enterprises, which through increased competition, will likely play a key a role in driving economic growth in the years to come. He referred to a document issued in December 2019, titled CPC Central Committee and State Council on the Development and create a better environment to support the views of the reform and development of private enterprises. “This document proposes to launch increased market competition in key industries, such as electricity, telecommunications, railways, petroleum, and natural gas,” he said.
In spite of these developments, Dean Xiang noted that China faces several challenges going forward, including an ageing population, shifts in population structure, declining social mobility, and income and wealth inequality. Additionally, he highlighted the imperative need for improvements in China’s social security system.
The summit also saw contributions from several other representatives of Cheung Kong Graduate School of Business. Zhou Chunsheng, CKGSB Professor of Finance and Academic Director for the EMBA program, contributed to the finance forum.
Professor Zhou explained that China has been characterized by a dual economy since the reforms and opening up, with industry and agriculture playing pivotal roles. Moreover, he expounded on the transformative impact of urbanization, highlighting how the influx of labor into urban areas has acted as a catalyst for unprecedented growth in sectors such as real estate, infrastructure, and fixed asset investment. He said these factors have become the driving forces behind China’s high-speed economic growth.
The influx of labor into urban areas has acted as a catalyst for unprecedented growth in sectors such as real estate, infrastructure, and fixed asset investment
CKGSB alumni Zhao Yingming, Chief Business Officer of Yunan Baiyao, and Chen Ke, Chief Operating Officer of ANTA Group, also shared insights during the consumer forum.
The Penn Wharton China Summit (PWCS)–to which CKGSB regularly provides cutting-edge insights and speakers—is a student-run organization jointly founded in 2016 by the Penn Wharton China Center at the University of Pennsylvania and the PWCs Organizing Committee. The summit aims to inspire interdisciplinary exchange of ideas, foster communication between different cultures, and promote collaboration among students, industry professionals, and businesses.
