SCMP Economy2 hours agoBusiness2 min readChina

Robin Xing on how China’s ‘two-speed’ economy can solve contrasting problems

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Morgan Stanley’s chief China economist Robin Xing discusses China’s K-shaped economic divergence, arguing the 'top half of the K' can offset deflation and weak consumption, while addressing Beijing’s priorities, the fallacy of composition, and how consumer support can sustain tech advancement amid ongoing US-China diplomatic engagements.

AI-generated summary

Why It Matters

Robin Xing, Morgan Stanley’s chief China economist and a Peking University graduate with a PhD from the Chinese Academy of Social Sciences, previously worked at Goldman Sachs and China International Capital Corp. He discusses China’s K-shaped economic divergence in a second Open Questions interview for SCMP Plus.

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Robin Xing is chief China economist at Morgan Stanley. A famed economist and Peking University graduate, Xing has a PhD in economics from the Chinese Academy of Social Sciences and previously worked at Goldman Sachs and China International Capital Corp.

In his second Open Questions interview, Xing dissects China’s K-shaped economic divergence and why he remains convinced that the “top half of the K” can offset challenges such as deflation and weak consumption. He also discusses Beijing’s real priorities, the “fallacy of composition” and why helping consumers will sustain and accelerate China’s tech advance.

This interview first appeared in SCMP Plus. For other interviews in the Open Questions series, click here.

President Xi Jinping and US President Donald Trump have met twice and are expected to meet two more times this year. Will the meetings deliver stability in trade, investment and broader economic ties? Can businesses now proceed with their trade and investment plans with greater clarity and confidence? Is the two-month extension of the tariff truce a disappointment?

What to Watch

AI outlook — possibilities, not facts

Beijing will prioritize demand-centric reflation to support consumer-driven growth and sustain technological advancement.
Likely · Within months
The top half of China’s K-shaped economy will continue to offset deflationary and weak consumption pressures.
Likely · Within months

Open Questions

What specific policies does Beijing prioritize to support the 'top half of the K'?
How will the upcoming Xi-Trump meetings influence concrete trade or investment agreements?
What metrics define the 'fallacy of composition' in the context of China’s economic policy?