Ep. 301: Andrew Polk on China’s Bet on Tech Supremacy
Mar 28, 2025
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Andrew Polk, co-founder and head of economic research at Trivium China, dives deep into China's economy and tech supremacy. He discusses the transition from property-driven growth to emerging industries, the complexities of Xi Jinping's economic philosophy, and China's strategic positioning in global supply chains amidst deglobalization. The conversation also touches on the implications of U.S.-China relations in light of possible changes in U.S. leadership and the ongoing challenges posed by tariffs, all while emphasizing the importance of strategic planning for entrepreneurs.
Andrew Polk emphasizes China's unique development model, which combines state control and market dynamics, allowing the economy to thrive despite underlying contradictions.
Xi Jinping's governance prioritizes technological advancement over rapid growth, reflecting a strategic vision where economic success supports broader political goals amid significant structural changes.
Deep dives
Andrew Polk's Journey to China Economics
Andrew Polk, co-founder and head of economic research at Trivium China, shares his unconventional path to becoming a China economist. Initially from Amarillo, Texas, Polk studied American Studies at Texas A&M University before teaching in Hong Kong, which sparked his interest in China. He transitioned to studying international relations and ultimately specialized in Chinese economics, emphasizing the unique aspects of China's development model that blend state control with market dynamics. Polk highlights how China's economy embodies a series of contradictions, making it a fascinating field of study for economists and analysts.
Xi Jinping's Economic Philosophy
Xi Jinping’s governance is characterized by a strong emphasis on political control intertwined with economic objectives, prioritizing technological advancement as a core component of China's global aspirations. Although Xi promotes the rejuvenation of the Communist Party, his view on economic success focuses more on technological innovation than rapid growth. He asserts that the strongest economies are those capable of leading in technology, which drives his emphasis on areas such as green tech and artificial intelligence. This approach reflects a strategic vision where economic growth supports broader political goals while navigating the complexities of a modern, contradictory economy.
The Transition and Challenges of the Chinese Economy
The Chinese economy is currently undergoing a significant transition from a reliance on property-driven growth to emerging industries such as electric vehicles and renewable technologies. However, this shift has revealed weaknesses, such as overproduction and weak domestic consumption, particularly following the contraction of the property sector. Despite some signs of stabilization and recovery in real estate prices, the economy still faces the challenge of overcapacity and the need for new productive forces to foster growth. As China navigates these structural changes, achieving a balance between technological development and domestic demand will be crucial for future sustainability.
Geopolitical Dynamics and China's Global Strategy
China is actively cultivating relationships with the global south to counterbalance its reliance on Western markets, integrating these countries into its economic strategies. This includes enhancing trade relations, especially in the automotive sector, where Chinese companies increasingly export vehicles to regions like South America and Africa. As global competition intensifies, China is focused on maintaining its role in global supply chains while navigating challenges posed by deglobalization trends. Furthermore, the evolving geopolitical landscape, particularly regarding Taiwan and Russia, shapes China's foreign policy approach as it seeks to assert its interests through both diplomacy and strategic partnerships.
Andrew Polk is the co-founder and head of economic research at Trivium China, a Beijing-based strategic advisory firm. Before founding Trivium, he was China director at Medley Global Advisors. Previously, he was the resident China economist at The Conference Board’s China Center for Economics and Business. Andrew is the co-author of The Long, Soft Fall in Chinese Growth (The Conference Board, 2015) and maintains a deep network of professional contacts in the official, academic, and business communities in China (built over a decade of living in China and working on China issues). This podcast covers China’s unique development model, Xi Jinping’s economic philosophy, transitioning from property-driven growth to new industries, and much more.