HONG KONG, Nov. 21 (Xinhua) — China’s opening-up policy will continue to drive economic growth, although its role will differ from that of previous decades, said Nobel laureate Joseph Stiglitz.
In an exclusive interview with Xinhua, the renowned U.S. economist shared his insights on China’s economic achievements, expressing firm optimism about the prospects of the world’s second-largest economy.
Stiglitz visited Hong Kong for the International Forum on China’s Economy and Policy, which was organized by Chief Executive’s Policy Unit of the Hong Kong Special Administrative Region (HKSAR) government and a think tank under the Chinese Academy of Social Sciences.
ROOM FOR RAPID GROWTH
Commenting on China’s reform policy over the past few decades, Stiglitz said it has been a major success.
“Anybody who looks at the increases in income, the number of people brought out of poverty, and the innovation that has occurred in China would be very impressed,” he said.
The economist endorsed China’s newly unveiled document of recommendations for formulating the 15th Five-Year Plan (2026-2030), which underscored greater scientific and technological self-reliance and strength, saying it was a step in the right direction.
While China is at the forefront of certain areas, Stiglitz said the country still needs to learn from others. “The nature of the international knowledge community is that it is a global community. That’s why you have to keep being open.”
He said that in the earlier days, China opened up to new technologies, with its growth mainly fueled by exports of manufacturing goods. At the same time, the country has narrowed the knowledge disparity with developed countries by investing heavily in research, human capital and education.
“China is now engaged in patenting and research at the frontier,” Stiglitz noted. “There are still areas for it to catch up, but that means more resources will be devoted to frontier science.”
The Chinese economy expanded 5 percent year on year in 2024, contributing around 30 percent to global economic growth. Stiglitz expected the country to become a more powerful engine for the world economy in the years ahead.
“There’s still lots of room for the Chinese economy to grow at a very rapid rate,” Stiglitz said, recommending stronger policies to boost domestic aggregate demand, particularly in the sectors of health, education and elderly care as urbanization continues over the next two decades.
HONG KONG’S EVOLVING ROLE
During the interview, Stiglitz elaborated on how Hong Kong can continue to thrive amid ongoing global economic uncertainties.
The “one country, two systems” policy has endowed Hong Kong with stronger adaptability and greater flexibility, positioning it to respond effectively to changes in a multipolar world, Stiglitz said.
As China’s foreign trade and corporate overseas investment continue to grow, the country is set to remain a major global player, and Hong Kong will play a larger role as a bridge between China and the rest of the world, he said.
Hong Kong’s unique advantages in its legal system and language environment have shored up its status as an international financial hub, he said, advising the city to diversify out of finance while maintaining a well-regulated financial sector.
Stiglitz credited the success of Hong Kong’s financial sector to its robust regulatory framework, cautioning against deregulation for the sake of competition. “Strong regulations may mean missing out on some of the aspects of modern finance, but I wouldn’t worry,” he added.
He suggested Hong Kong to give priorities to sectors such as education, health, tourism and innovation. “Hong Kong is doing the right thing by placing innovation and education at the heart of its economic strategy,” he said.
In this year’s policy address, the HKSAR government has underlined the integrated development of education, technology and talent as a way to bolster competitiveness, saying that the strategy can build rich talent resources, knowledge reserve, and capacities for scientific and technological innovation.
Despite global economic headwinds, the economist has remained upbeat about the sustained vitality of Hong Kong.
As an international center for finance, trading and shipping, Hong Kong will inevitably face “ups and downs,” but the city has been making great strides in adapting to rapid changes, Stiglitz said. ■
