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China's animal spirits need to be revived, says economist Robin Xing

China's economy needs a revival of its "animal spirits", according to economist Robin Xing, who believes that the country's growth potential is being stifled by a lack of innovation and entrepreneurship.

Xing, a former World Bank economist, made the comment in an interview with the South China Morning Post, in which he also noted that China's economy was facing significant challenges in the wake of the US-China trade tensions.

"The Trump era has been a major shock to the Chinese economy," Xing said. "The uncertainty and unpredictability have made it difficult for businesses to make long-term plans and investments."

However, Xing is optimistic that China can overcome these challenges and return to its growth trajectory. He believes that the country's economic fundamentals are still strong, and that the government has the tools to stimulate the economy if needed.

"What China needs is a revival of its animal spirits," Xing said. "We need to encourage innovation, entrepreneurship and risk-taking. We need to create a more dynamic and competitive economy that is driven by the private sector, not just the government."

Xing also noted that China's economy is facing significant demographic challenges, as the country's working-age population is expected to decline in the coming years. He believes that this presents an opportunity for China to shift its focus towards higher-value added industries and services, and to develop its human capital.

"In the long run, China's demographic challenges can be a blessing in disguise," Xing said. "We can use this as an opportunity to upgrade our economy and become more innovative and competitive. We can focus on developing our human capital and creating a more dynamic and diversified economy."

Overall, Xing believes that China's economy has the potential to be a major driver of global growth, and that the country's leaders have the tools to stimulate the economy and overcome the challenges it is facing.

"I am optimistic about China's future," Xing said. "I believe that the country has the potential to be a major driver of global growth, and that its leaders have the tools to stimulate the economy and overcome the challenges it is facing. What China needs is a revival of its animal spirits, and I believe that this can be achieved through a combination of innovation, entrepreneurship and government support."