(Preview) Xi on Development and Three-Patting Cadres; PRC Venture Investing; Exit Ban Controversies; H20s and a New Trump Narrative; The Big Tariff

Jul 23, 2025

Xi Jinping emphasizes rational marketplaces, proposing a shift in growth strategy across sectors. There's a deep dive into the challenges facing Chinese startups amidst receding U.S. venture capital. The podcast discusses two controversial exit bans on American citizens in China, highlighting their differences. Additionally, there are mixed signals regarding the Trump administration's approach to China. Stay tuned for insights into tariffs and the evolving landscape of China's tech industry.

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INSIGHT

Xi Critiques Provincial Industrial Overreach

Not every Chinese province should develop all new growth industries like AI or EVs.
Xi Jinping critiques local officials' tendencies to blindly follow trends, causing inefficiencies and overcapacity.

INSIGHT

Political Challenges in EV Industry Consolidation

Political roadblocks hinder consolidation in China's EV sector since provinces compete to keep their factories.
Xi Jinping's recent remarks signal a slowdown or rationalization in overinvested hot growth industries.

INSIGHT

Conflicting Signals for Chinese Cadres

Chinese cadres face conflicting signals from Beijing about growth and GDP targets.
The system appears to be undergoing self-correcting economic policy adjustments this year.

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On today's show Andrew and Bill begin with comments from Xi Jinping and renewed emphasis on building more rational marketplaces across key sectors in tech and beyond. Topics include: The implication that not every province has to participate in new growth areas, cadres parsing conflicting guidance from Beijing, and efforts to stimulate a healthy investment ecosystem for startups as U.S. venture investment recedes. From there: Thoughts on two high-profile exit-bans on American citizens traveling in China, why the two cases are different, more chatter that the Trump administration is softening on China, counterpoints to that argument, and a bit more news on "The Big Tariff," Yang Hansen.

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Bill Bishop is the author of Sinocism

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