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China Has ‘Leapfrogged’ the West | Louis-Vincent Gave

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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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INSIGHT

China's Industrial Leap

  • China's economy shifted from real estate to industry after the US blocked semiconductor exports in 2018.
  • This spurred massive industrial growth, allowing China to leapfrog the West in sectors like autos and renewable energy.
INSIGHT

Long-Term Vision vs. Short-Term Politics

  • Western countries struggle with inconsistent industrial policy due to changing governments.
  • China's long-term focus allowed them to dominate sectors like EVs and lithium-ion batteries.
INSIGHT

The Hunger Games of Chinese Capitalism

  • Chinese industrial policy encourages competition by funding numerous companies in a target sector.
  • This 'Hunger Games' approach leads to lower consumer prices and higher quality products.
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