Keyu Jin

And this is why the entrepreneurialism is still there, because the fundamentals are there, even though the economy is weak, consumers are not confident, and private investment is insufficient.

The fundamentals are there.

Is China where it should be?

Far, far, far from it, because China's potential based on the fundamentals is a much higher level of per capita income.

than where it is currently.

It's kind of currently in a $10,000 bracket.

And this is also a puzzle because you're a $10,000 per capita income country that can actually do leading edge technology and can be neck to neck with U.S.

companies on these high tech.

That's the first time in history.

Even the Soviet Union, which was very technologically advanced, did not have the extent of commercializable civilian technology and the technologies that were pervasive throughout the economy.

But fundamentally, we have to understand how much of this real estate crisis has impinged on the economy and explains the persistent slowdown.

A few years ago, there was a crackdown on the real estate sector.

And again, it comes back to a lot of the social issues we were discussing.

Why aren't people having kids?

Well, maybe it's because housing is too expensive.

Maybe it's because education system is too competitive.

The speculative bubbles in the real estate is making housing unaffordable, and that's not part of the Chinese social characteristics.

And so when they decided that the property investors were going to be reined in, that housing was to be lived in, not speculated, it really brought down the whole sector in terms of investment, in terms of the financing of the sector.

But ultimately, it made such a massive impact or such a massive dent on the economy because it really...

It embodied the two fundamental pillars of the economy.