Despite appearing to have lost its long-held title of “most populous nation” to India, China has the potential to maintain its demographic advantages over its neighbour, but analysts say that will require China to better leverage its massive and still-growing pool of quality workers.

China on Tuesday cut the benchmark lending rate loan prime rate (LPR) in line with market expectations, ending nine months without change. It marks the third effort to bring down the nation's policy rates within a week, sending a clear signal that China is resolved to spur the still unfolding economic recovery and unleash the growth potentials amid multiple downward pressures ranging from a complex global geopolitical situation and weakening world demand.

As China's economic recovery is facing downward pressure, stronger and clearer policy shifts are needed to restore business confidence and realize sound growth, a political adviser said. Yin Yanlin, former deputy director of the office of the Central Committee for Financial and Economic Affairs, said more forceful policies are needed to get the market confidence back on track.

China needs a new playbook with resolute actions and clear signals to stem the downward spiral and reverse pessimism within the private sector, top economists said. Beijing needs to “immediately” stop China’s economy from going into a downward spiral by implementing stronger measures that prop up “effective demand”, said Yin Yanlin, deputy director of the economic affairs committee of China’s national political advisory body. “The key is to prop up overall demand,” Yin said.

On June 17, 2023, the 45th Tsinghua University Forum on China and the World Economy was held inside the Weilun Building’s main lecture hall on campus at Tsinghua University’s School of Economics and Management. The biannual event was hosted by Tsinghua University’s Academic Center for Chinese Economic Practice and Thinking (ACCEPT) under the theme of “2023 Mid-Year Economic Outlook.”

The following is a summary of Yin Yanlin's keynote address to attendees at the 45th Tsinghua University Forum on China and the World Economy held at Tsinghua University, Beijing, on June 17, 2023. Yin is the Vice Chairman of the Economic Committee for the 14th National Committee of the Chinese People's Political Consultative Conference and former Deputy Director of the Office of the Central Financial and Economic Affairs Commission.

​The following is a summary of Zhang Bin's comments during a roundtable discussion at the 45th Tsinghua University Forum on China and the World Economy held at Tsinghua University, Beijing, on June 17, 2023. Zhang is the Deputy Director of the Institute of World Economics and Politics (IWEP) at the Chinese Academy of Social Sciences.