The Prof G Pod with Scott Galloway China Decode: How China Is Breaking the World of Trade
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Dec 2, 2025 China’s push for self-sufficiency reshapes global trade dynamics. As the country aims for near-total reliance, it raises concerns in Europe over competition with Japan and Germany. Tensions escalate in Asia with Taiwan's significant defense investment. Plus, hear about China's strategy to boost the services sector by maximizing school holidays. The hosts also discuss the implications of export dominance and predict future trade trends, including a rising surplus and renewed manufacturing support.
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China's Self-Sufficiency Is Rewiring Trade
- China is shifting toward near-total self-sufficiency and is dramatically widening its trade surplus.
- That surplus is reshaping global trade by replacing foreign suppliers across many industries.
Import Substitution Goes Up The Value Chain
- China pursues aggressive import substitution across high-value sectors via policies like Made in China 2025.
- This policy success means many countries now face rapid competitive displacement by Chinese firms.
Manufacturing Surplus Surpasses Historical Norms
- China's manufacturing surplus as a share of GDP now exceeds historical peaks of Japan and Germany.
- Its scale and speed of growth create unique global economic and political pressures.