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China’s economy registered an average annual growth of 9.5% from the start of reforms in 1978 until 2019. Throughout this period, economic performance was a key indicator of China’s success and served as a critical pillar of the Chinese Communist Party’s legitimacy. Over the past five years, however, China’s leadership has taken an ideological turn under Xi Jinping, and economic growth has no longer been a top priority.

To examine the myriad factors behind China’s recent economic slowdown and, more importantly, consider where China might be headed, the Stanford Center on China’s Economy and Institutions and Asia Society Policy Institute’s Center for China Analysis co-organized the fourth in their series of closed-door roundtables. Held in April 2024 and conducted under the Chatham House Rule, the roundtable brought together leading experts on the Chinese economy for a discussion focused on the following questions:

  1. What is the mix of determinants — cyclical, structural, and political — for slower economic growth in China?
  2. How much can China’s recent economic woes be attributed to Beijing’s own policy mistakes, and how much to tensions between China’s hybrid Leninist political regime and the dynamism of a market economy?
  3. What are the potential political, social, and geopolitical consequences of the slowdown?
  4. If the slowdown continues, or even worsens, could the leadership’s priorities shift? If so, what policy measures or structural reforms might reverse the slowdown and preempt some of the broader consequences?
     

In partnership with Asia Society Policy Institute's Center for China Analysis

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Experts Convene Roundtable to Discuss China’s Property Sector Slowdown

The Stanford Center on China’s Economy and Institutions and Asia Society Policy Institute’s Center for China Analysis co-organized a closed-door roundtable on the extent, causes, and implications of China’s current property sector slowdown and produced a summary report of the discussion.
Experts Convene Roundtable to Discuss China’s Property Sector Slowdown
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Experts Convene Roundtable to Discuss China’s Industrial Policy

The Stanford Center on China’s Economy and Institutions and Asia Society Policy Institute’s Center for China Analysis co-organized a closed-door roundtable on the scope, impact, and implications of China’s industrial policy and produced a summary report of the discussion.
Experts Convene Roundtable to Discuss China’s Industrial Policy
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The Stanford Center on China’s Economy and Institutions and Asia Society Policy Institute’s Center for China Analysis co-organized a closed-door roundtable on China's recent economic slowdown and produced summary report of the discussion.

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Rural girls in China stay in school longer than boys and outperform them in many subjects. This gender gap suggests analogous disparities in early childhood development, a key factor in later educational outcomes. This study examines gender disparities in social-emotional development among 1,301 children aged 18–30 months in rural China. Results indicate that male children trail their female counterparts by 0.18 SD on average on the scale of standardized ASQ:SE score. A large share of the difference is driven by the bottom 10 % of children, where the magnitude of the gender gap (0.34 SD) is 1.9 times larger than at the median (0.19 SD). Demographic characteristics are uncorrelated with the gender gap in heterogeneity analysis, suggesting that the mechanisms underlying observed gender disparities are similar across rural Chinese households.

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Children and Youth Services Review
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Alexis Medina
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To examine the association between electronic media exposure and parental language input, Language Environment Analysis technology was used to collect data on electronic media exposure and parental language input in 158 peri-urban and rural households with children aged 18–24 months in southwestern China. The sounds children made and the sounds they heard were quantified. Multiple linear regression and quantile linear regression were used to determine the relationship between electronic media and the outcomes of interest. The results showed that each hour of electronic media exposure was associated with reduced conversational turn count (p < .05) and child vocalization count (p < .05). A large share of the reduction was driven by the higher quantile of children. Reductions associated with electronic exposure were also observed in number of segments and conversational turns. These results may help explain the association between child electronic media exposure and language delay in an under-studied and at-risk population.

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Applied Developmental Science
Authors
Scott Rozelle
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Purpose
China’s rapid urbanization has been associated with increased mental health challenges, especially in rural-to-urban migrant children. This study evaluates the effects of mindfulness and life-skills (LS) training on emotional regulation and anxiety symptoms from a randomized controlled trial aimed at improving the mental health of Chinese migrant children.

Methods
Two intervention arms—mindfulness training (MT) and MT plus LS mentorship (MT + LS)—were compared to a waitlist control group of 368 migrant children aged 9–17 years. Volunteers were trained to deliver interventions to 285 migrant children in small groups of 15 for eight weeks weekly. Social integration varied: migrant children mixed with local children at public schools were considered highly integrated, those in migrant-only classrooms at public schools had intermediate levels of integration, and children in private migrant schools had low integration. Emotion regulation and anxiety symptoms were assessed preintervention, postintervention, and three months postintervention.

Results
Postintervention and compared to the control group, children with high social integration in the MT arm showed increased cognitive reappraisal ability (p < .05) but higher physical anxiety (p < .01). Children with high social integration in the MT + LS arm had lower anxiety symptoms of harm avoidance (p < .01) and physical anxiety (p < .05). Children with low social integration in the MT + LS arm showed lower cognitive reappraisal (p < .01) and poorer overall emotion regulation abilities (p < .01). Three months later, children with intermediate integration in the MT + LS arm had lower separation anxiety (p < .05) and harm avoidance anxiety (p < .05). No other groups showed significant improvements in emotion regulation or reducing in anxiety symptoms three months postintervention.

Discussion
Mindfulness and LS training may benefit Chinese migrant children who have higher levels of social integration but increase anxiety in those with lower social integration. Future research should consider the sociocultural context in which a treatment is implemented.

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Journal of Adolescent Health
Authors
Huan Wang
Scott Rozelle
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Michael Breger
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The Indo-Pacific, the world’s fastest-growing region in the global economy, faces complex geopolitical and geo-economic risks. Amid Russia’s unrelenting war in Ukraine and its strengthening ties with a bellicose North Korea, China continues to exert its power through economic coercion and diplomatic pressures. Meanwhile, Asia's established and aspiring democracies must rise to the challenge of preventing further democratic decline and revitalizing their institutions. These trends dominated the agenda at the recent Nikkei Forum, The Liberal International Order in the Indo-Pacific.

Cohosted by Shorenstein APARC, the Keio Center for Strategy at the Keio University Global Research Institute, and Nikkei Inc., the forum was held on June 24, 2024, at Keio University and featured Freeman Spogli Institute (FSI) and Keio experts. Its first session, moderated by Akio Fujii, executive chair of the editorial board at Nikkei Inc., included panelists Oriana Skylar Mastro, FSI center fellow at APARC, and Michael McFaul, the director of FSI. They examined the geopolitical effects of the war in Ukraine, deterrence and provocation in Taiwan, and their implications for security in the Indo-Pacific. The second session, moderated by Nikkei commentator Hiroyuki Akita, included Gi-Wook Shin, the director of APARC and director of the Korea Program, and Kiyoteru Tsutsui, the deputy director of APARC and director of the Japan Program. Panelists considered the connectivity of European and Indo-Pacific security, the rise of authoritarianism and global populism, international partnerships, and various ongoing efforts to protect the liberal international order in the Indo-Pacific. The session recordings in English and Japanese are available on the Nikkei Global Events YouTube channel. 

Conflict, Deterrence, and Provocation

Opening the first session, McFaul underscored the broader geopolitical implications of the invasion of Ukraine. Emphasizing the significance of Russian President Vladimir Putin's recent visit to North Korea, he highlighted the intertwined nature of European and Asian security. McFaul argued against the notion that global security should solely focus on China, stressing that Putin's actions demonstrate a critical link between European security concerns and global stability.

McFaul offered a mixed assessment of the war in Ukraine. He praised the international community's response in providing military support and economic aid to Ukraine, stating, “I have been mostly impressed with how the liberal free world, including Japan, came together to provide weapons first and foremost, to provide economic assistance secondarily, and to put in place sanctions [agsint Russia].” Yet he also criticized delays in Western responses, attributing them partly to internal political dynamics, including actions taken during the Trump administration.

What I see, tragically, is the breakdown of the liberal International order.
Michael McFaul
Director of FSI

McFaul expressed concern that Russian defensive positions now hinder prospects for a breakthrough on the Ukrainian side, with future developments tied to the outcome of the next U.S. presidential election. He underscored the importance of democratic nations organizing against autocratic regimes, framing the conflict in Ukraine as a critical battleground for liberal democratic values amidst global power struggles. McFaul described that “what I see, tragically, is the breakdown of the liberal International order. We're going back to an earlier period where there was not one order, but two, and maybe many orders, and one of those divisions is between autocrats and democrats.”

Center Fellow Oriana Skylar Mastro addressed the moderator's query about Ukraine’s implications for East Asia by delving into the complexities of deterrence and provocation in relations with China. She highlighted three main concerns: the blurred distinction between actions that deter China versus those that provoke it, the conflicting priorities of reassuring allies versus deterring adversaries post-Ukraine, and the delicate balance between showcasing military capabilities and demonstrating resolve. Mastro argued that while military build-up might deter China, political gestures, such as enhancing Taiwan's international stature, could provoke tensions.

She emphasized the challenges in aligning U.S. and Japanese strategies, especially regarding Taiwan, where differing interpretations of deterrence and provocation persist. “Attempts to signal resolve can be much more provocative than attempts to demonstrate capabilities [...] It seems that the United States and Japan at least have to be on the same page about what is reassuring versus what deters China, what deters China versus what provokes China, and what is more important, capabilities or resolve,” she explained

Mastro stressed the importance of nuanced policy decisions considering how actions perceived as deterrence in one context might provoke, in another, thus impacting regional stability. “I prefer for the United States to speak softly and carry a big stick, meaning we have a lot of capability but we should stop talking about it so much,” she said. She underscored the U.S. and Japan must coordinate closely on strategic messaging to ensure a cohesive approach to managing China's responses and maintaining regional security.

FSI and APARC scholars meet with Yoshimasa Hayashi FSI and APARC scholars meet with Yoshimasa Hayashi.

During their visit to Tokyo, the Stanford delegation met with Japanese government officials, including Chief Cabinet Secretary Yoshimasa Hayashi.

Michael McFaul gave an interview to the Japan Broadcasting Corporation's (NHK) prime-time news show News 7, which you can view here >

Manifold Pressures on Liberal Democracy

During the second panel, Gi-Wook Shin discussed the contemporary challenges facing liberal democracy, citing instances of foreign influence from authoritarian states like Russia and China. He began with a personal anecdote from Mongolia, where a friend running for parliament reported intimidation by authorities allegedly supported by Russia. Shin drew parallels to previous instances of interference, such as Russia's involvement in the 2016 U.S. election and China's actions in Taiwan and Korea.

In contrast to the American and British leadership against fascism and communism in the 1930s and 1940s, Shin described the current crisis in global leadership to safeguard liberal values. He questioned whether any country could now step up to combat rising authoritarianism, citing Modi’s India and alliances forming between leaders like Putin, Kim Jong-Un, and Xi Jinping. “I don't think I can say with confidence that the U.S. can defend liberal democracy, I don't see any leader in Europe either, and I don't see anyone in Asia,” he lamented.

He called for strategies to restore and strengthen global leadership in promoting and defending liberal democracy against mounting authoritarian challenges from China, Russia, and others.

Japanese democracy is functioning quite well. Apart from that, Japanese Society is peaceful, safe, and stable. Although the economic growth rate is low, people's discontent is not gushing out
Kiyoteru Tsutsui
Deputy Director of APARC

In his remarks, Kiyoteru Tsutsui addressed these global challenges to democracy and emphasized Japan's role in safeguarding it. Tsutsui noted Japan's relatively stable democratic environment compared to nations experiencing greater political divisions. Despite recent economic fluctuations in the country,, “Japanese democracy is functioning quite well,” he argued. “Apart from that, Japanese society is peaceful, safe, and stable. Although the economic growth rate is low, people's discontent is not gushing out and they can live quite a good life.”

Tsutsui emphasized Japan's economic and diplomatic contributions to promoting democracy, citing its trusted role in assisting Asian countries through the Japan International Cooperation Agency (JAICA). He suggested Japan could assert its influence not only through traditional democracy promotion but also by establishing standards in areas like infrastructure and public health. “If we look at the global rankings, Japan has quite a big influence.” He underscored the importance of Japan's discreet but impactful diplomacy in upholding democratic values globally, including its involvement in initiatives like the Free and Open Indo-Pacific Strategy, The Quad, and CPTPP. Through practical actions and international cooperation, he said, Japan  demonstrates its commitment to democratic values and counters global trends of democratic decline. Throughout the forum, the panelists agreed that the Indo-Pacific remains at the center of the global struggle between democracy and autocracy. They emphasized the need for collaborative action to bolster democratic institutions worldwide and urged nations to unite quickly to prevent further escalation of tensions in the region and beyond.

Nikkei newspaper report on the Nikkei Forum – July 3, 2024
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Japanese Prime Minister Fumio Kishida arrives to address a joint meeting of Congress in the House of Representatives at the U.S. Capitol on April 11, 2024 in Washington, DC.
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Kishida May Pay a Price, but Has Handled LDP Scandal Shrewdly

Moves by Japanese prime minister could have lasting impact on country's politics.
Kishida May Pay a Price, but Has Handled LDP Scandal Shrewdly
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(Clockwise from top left) Michael McFaul, Oriana Skylar Mastro, Gi-Wook Shin, Kiyoteru Tsutsui
(Clockwise from top left) Michael McFaul, Oriana Skylar Mastro, Gi-Wook Shin, Kiyoteru Tsutsui.
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At the Nikkei Forum, Freeman Spogli Institute scholars Oriana Skylar Mastro, Michael McFaul, Gi-Wook Shin, and Kiyoteru Tsutsui considered the impacts of the war in Ukraine, strategies of deterrence in Taiwan, and the growing tension between liberal democracy and authoritarian populism.

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The event will be webcast live from this page.

This online event, set for July 8,  7:00-8:00 am US PT, highlights new research on a significant shift in popular sentiment in China regarding the causes of economic inequality. The Stanford Center on China’s Economy and Institutions (SCCEI) and the CSIS Trustee Chair in Chinese Business and Economics are releasing a new Big Data China feature explaining growing popular angst in China about the sources of their own economic success or setbacks, and the implications for confidence in China's economy and economic governance for policymakers in China and the rest of the world. Professors Scott Rozelle of Stanford SCCEI and Martin Whyte of Harvard University will discuss their new survey research demonstrating that the Chinese populace increasingly attribute inequality to the economic system rather than individual ability.

Trustee Chair Scott Kennedy will moderate the discussion of this research, followed by a conversation on the implications for the Chinese economy and U.S. policymakers. Panelists will include Ilaria Mazzocco (CSIS Trustee Chair), Elizabeth Perry (Harvard University), Jessica C. Teets (Middlebury College), and Qin Gao (Columbia University). 

FEATURING

Qin Gao
Director, China Center for Social Policy, Columbia University
Scott Kennedy 
Senior Adviser and Trustee Chair in Chinese Business and Economics
Ilaria Mazzocco
Senior Fellow, Trustee Chair in Chinese Business and Economics
Elizabeth Perry
Henry Rosovsky Professor of Government, Harvard University
Scott Rozelle
Co-director, Stanford Center on China's Economy and Institutions
Jessica Teets
Professor of Political Science, Middlebury College
Martin Whyte
John Zwaanstra Professor of International Studies and Sociology, Emeritus, Harvard University 
 

EVENT PARTNERS
 

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Virtual Livestream 

Qin Gao
Scott Kennedy
Ilaria Mazzocco
Elizabeth Perry

Encina Hall East, E404
Stanford, CA 94305-6055

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Faculty Co-director of the Stanford Center on China's Economy and Institutions
Helen F. Farnsworth Endowed Professorship
Senior Fellow at the Freeman Spogli Institute for International Studies
Senior Fellow at the Stanford Institute for Economic Policy Research
scott_rozelle_new_headshot.jpeg PhD

Scott Rozelle is the Helen F. Farnsworth Senior Fellow and the co-director of Stanford Center on China's Economy and Institutions in the Freeman Spogli Institute for International Studies and Stanford Institute for Economic Policy Research at Stanford University. He received his BS from the University of California, Berkeley, and his MS and PhD from Cornell University. Previously, Rozelle was a professor at the University of California, Davis and an assistant professor in Stanford’s Food Research Institute and department of economics. He currently is a member of several organizations, including the American Economics Association, the International Association for Agricultural Economists, and the Association for Asian Studies. Rozelle also serves on the editorial boards of Economic Development and Cultural Change, Agricultural Economics, the Australian Journal of Agricultural and Resource Economics, and the China Economic Review.

His research focuses almost exclusively on China and is concerned with: agricultural policy, including the supply, demand, and trade in agricultural projects; the emergence and evolution of markets and other economic institutions in the transition process and their implications for equity and efficiency; and the economics of poverty and inequality, with an emphasis on rural education, health and nutrition.

Rozelle's papers have been published in top academic journals, including Science, Nature, American Economic Review, and the Journal of Economic Literature. His book, Invisible China: How the Urban-Rural Divide Threatens China’s Rise, was published in 2020 by The University of Chicago Press. He is fluent in Chinese and has established a research program in which he has close working ties with several Chinese collaborators and policymakers. For the past 20 years, Rozelle has been the chair of the International Advisory Board of the Center for Chinese Agricultural Policy; a co-director of the University of California's Agricultural Issues Center; and a member of Stanford's Walter H. Shorenstein Asia-Pacific Research Center and the Center on Food Security and the Environment.

In recognition of his outstanding achievements, Rozelle has received numerous honors and awards, including the Friendship Award in 2008, the highest award given to a non-Chinese by the Premier; and the National Science and Technology Collaboration Award in 2009 for scientific achievement in collaborative research.

Faculty affiliate at the Center on Democracy, Development, and the Rule of Law
Faculty Affiliate at the Walter H. Shorenstein Asia-Pacific Research Center
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Scott Rozelle
Jessica Teets
Martin Whyte
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Kelly Reiling is a project manager at the Rural Education Action Program (REAP) at Stanford Center on China’s Economy and Institutions (SCCEI). Kelly graduated from Colgate University in 2022 with a B.A. in International Relations and Chinese Language. Following graduation, she lived in Taitung, Taiwan on a Fulbright Fellowship, where she taught English and coached soccer to elementary school students. Her experiences at Colgate and in Taiwan instilled in her a deep interest in cross-cultural collaboration, early education, and Chinese language, which led her to join REAP in the summer of 2024. Kelly works on a variety of subjects at SCCEI, including early childhood development research and health, education, and public policy projects.

Project Manager, Rural Education Action Program
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James Irvin Miller Professor of Finance, Stanford Graduate School of Business
Faculty Affiliate at the Stanford Center on China's Economy and Institutions
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Professor Zhiguo He is the James Irvin Miller Professor of Finance at the Graduate School of Business, Stanford University. He is a financial economist whose expertise covers financial markets, financial institutions, and macroeconomics broadly. He is also conducting academic research on Chinese financial markets, and writing academic articles on new progress in the area of cryptocurrency and blockchains. Before joining Stanford GSB, he was on the faculty of Chicago Booth from 2008 to 2023, where he received tenure in 2015 and led Becker Friedman Institute China from 2020 to 2023.

His research has been published in leading academic journals in finance and economics. After serving as associate editors for several leading academic journals, He served as the guest editor of the Review of Finance “Special Issue on China” and currently serves as the editor of the Review of Asset Pricing Studies.

Professor He received his bachelor and master degrees from the School of Economics and Management at Tsinghua University before receiving his PhD from the Kellogg School of Management at Northwestern University in 2008. He has been named a 2014 Alfred P. Sloan Research Fellow, and has won numerous awards for his outstanding scholastic record, including the Lehman Brothers Fellowship for Research Excellence in Finance, the Swiss Finance Institute Outstanding Paper Award, the Smith-Breeden First Prize, and the Brattle Group First Prize. Before his academic career at Chicago Booth, he worked as a stock analyst at the China International Capital Corporation in Beijing in 2001 and visited the Bendheim Center for Finance at Princeton University as a post-doctoral fellow in 2008.

In Autumn 2015 Professor He was the Dean’s distinguished visiting scholar at Stanford University, Graduate School of Business, and in winter 2020 he was a visiting professor of finance at Yale University, School of Management. In January 2020, he testified at U.S.-China Economic and Security Review Commission (USCC) Hearing on “China’s Quest for Capital: Motivations, Methods, and Implications.”

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CDDRL Honors Student, 2024-25
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Major: International Relations
Hometown: Toronto, Canada
Thesis Advisor: Jean Oi

Tentative Thesis Title: Exploring Stakeholder Decision-Making and Incentive Dynamics in Chinese Development Projects

Future aspirations post-Stanford: After graduation, I hope to 1) pursue a graduate degree in international policy and/or law and 2) work at a think tank or geopolitical research firm, with the eventual possibility of joining the Canadian government. Climate tech is another passion of mine, so I will always remain open to joining a startup too.

A fun fact about yourself: People always think being from Canada is a fun fact... but I'll say that I'm ambidextrous.

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CDDRL Honors Student, 2024-25
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Major: International Relations
Hometown: New York City
Thesis Advisor: Michael Bennon

Tentative Thesis Title: Words and Actions: China in the Post-BRI World

Future aspirations post-Stanford: I hope to work at the intersection of foreign policy and international business. I am interested in how policy change, both directly related to and unrelated to trade, impacts global markets and how this trickles down to individuals around the world. After a few years of working, I also plan to consider graduate school — perhaps a joint MIP/MBA or something similar.

A fun fact about yourself: I have dual citizenship in Italy and the US. I can also type 124 words per minute, which will hopefully serve me well in the next year.

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