The Peking order: Can China’s army surpass the US?
Nov 14, 2024
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Avantika Chilkoti, a global business correspondent for The Economist, discusses the decline in luxury e-commerce, revealing why shoppers are favoring tactile experiences over online purchases. She highlights challenges faced by platforms like Farfetch. Meanwhile, Anne Rowe shares the poignant story of Balthazar Uzca, Ecuador's last ice miner, detailing his battle against climate change and modernity. Their conversation intertwines contemporary economic trends with historical narratives, showcasing how personal stories reflect broader global shifts.
China's rapid military modernization includes advancements in naval and air power, yet it faces significant integration and operational challenges.
The decline in luxury e-commerce stems from economic shifts and increased competition, pushing consumers back to traditional retail experiences.
Deep dives
The Evolution of China's Military Capabilities
China's military modernization efforts are rapidly advancing, particularly within its navy and air power. The Chinese navy, once viewed as only possessing sheer numbers, is now producing sophisticated warships that rival American designs, as evidenced by the shrinking ratio of vertical launch system cells. In air power, China's development of advanced jet engines and capable missiles like the PL-15 highlights a significant progress, closing the gap with U.S. military technology. Moreover, China's hypersonic missile capabilities have already been deployed, placing it ahead of the U.S. in this critical area, indicating a shift in military balance in the Pacific region.
Challenges Facing China's Military Integration
Despite advancements, China's military faces substantial integration challenges between its branches—army, navy, and air force—impacting operational effectiveness. Coordination issues, logistics inefficiencies, and a lack of recent combat experience pose major hurdles for deploying its growing arsenal in real-world scenarios. The lessons from the conflict in Ukraine demonstrate that superior numbers do not guarantee victory if command and logistics fail. These fundamental integration challenges will test China's ability to project its military capabilities effectively, especially in potential conflicts over Taiwan or in the South China Sea.
The Luxury E-Commerce Landscape Post-Pandemic
The pandemic led to a boom in luxury e-commerce, but this trend has now reversed, with major platforms like Farfetch and Matches.com experiencing significant downturns. High inflation and economic uncertainty have shifted consumer behavior, prompting a return to brick-and-mortar shopping for luxury goods, while increased competition from designers launching their own sites has further strained these platforms. MyTeresa, a relatively smaller player, has managed to thrive by offering a curated selection of exclusive brands and an exceptional customer experience that includes unique, luxury-focused events. This strategic approach to logistics and branding positions MyTeresa favorably as it acquires Uxnet-A, an important move to navigate the changing luxury e-commerce landscape.
China is enacting a rapid project of military modernisation. Though in some areas its forces are already stronger than America, that does not mean China is ready for war. Why luxury shoppers are no longer buying so much online (10:16). And remembering Balthazar Uscha, Ecuador’s last ice-miner (16:45).