Lan Xiaohuan, an economics professor at the China Europe International Business School, has gained significant attention for his book, 'How China Works: An Introduction to China’s State-led Economic Development.' The work, which has sold millions of copies domestically, provides a framework for understanding the mechanisms behind China’s rapid economic growth and its current transition toward a more technology-driven model.

In recent discussions, Lan highlights the structural realities of China’s economy, specifically addressing the country's record trade surplus. He argues that this surplus is a byproduct of China's unique industrial capacity and global supply chain integration. Furthermore, Lan advocates for a more robust social safety net, suggesting that internal consumption must be bolstered to sustain long-term growth as the country moves away from its traditional reliance on exports and infrastructure investment.

A central theme in Lan’s current analysis is the 'data economy.' He posits that China’s ability to aggregate and utilize public data infrastructure provides a distinct advantage in the global artificial intelligence race against the United States. By leveraging state-led data collection and management, Lan suggests that China can accelerate AI development in ways that private-sector-only models in the West may struggle to replicate. While the book is widely read within China, its international translation has sparked debate among global economists regarding the sustainability of state-led development in an increasingly fragmented global trade environment.