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China Has ‘Leapfrogged’ the West | Louis-Vincent Gave
Jan 28, 2025
Louis-Vincent Gave, founder and CIO of Gavekal, dives into how China is reshaping the global economy. He highlights China's leap in industries like electric vehicles and solar energy, along with its impressive $1 trillion trade surplus. Gave contrasts China's stable policies with the U.S., discusses the implications of rising energy costs, and predicts where investment opportunities lie as geopolitical tensions rise. He also explores the evolving dynamics of U.S.-China relations and offers insights into China's market appeal amidst global uncertainties.
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Quick takeaways
- China's shift from a real estate-focused economy to industrial output has propelled it ahead of the West in key sectors.
- Recent policy changes in China are aimed at boosting consumer spending to stabilize and invigorate the economy for sustainable growth.
Deep dives
Price Adjustments in Telecommunications
Recent discussions reveal that major wireless companies are permitted to raise prices in response to inflation, despite the burden such actions place on consumers bound by contracts. This situation has led to substantial price cuts from competing providers, like the reduction of Mint Unlimited's monthly fee from $30 to $15. This price adjustment strategy not only aims to attract new customers but also highlights the competitive dynamics between smaller operators and larger telecom companies. Such adjustments are crucial for consumers seeking affordable alternatives amid rising costs elsewhere.
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