China’s next generation

China’s economic trajectory depends on a rising generation that is more prosperous and globally aligned than its predecessors, yet burdened by the long-term social consequences of the one-child policy. While the nation faces structural challenges including an aging population and high youth unemployment, the economy is shifting from state-led industrialization toward innovation-driven growth. Keyu Jin, Associate Professor of Economics at the London School of Economics, argues that despite periodic regulatory crackdowns, the private sector remains the primary engine of development. China’s leadership is currently recalibrating its strategy to foster high-tech sectors like electric vehicles while navigating the complexities of a more demanding, educated populace. Sustaining this transition requires deeper institutional reforms, particularly within the financial system, to maintain the productivity growth necessary for China to evolve into a high-income nation while managing escalating geopolitical tensions with the United States.