Driving with Dunne

Our guest today, Lizzi Lee, is smart, daring and unconventional. After earning a PhD in economics from MIT, Lizzi Lee took a bold right turn and dove into research and writing. A few weeks ago, Lizzi wrote a very compelling piece in Foreign Affairs about the risks facing Chinese companies - price wars and vanishing margins at home. The stubborn underlying problem is that China cannot shake itself free from chronic overcapacity. Well, why not, we might wonder. Just shout down the extra plants and get supply in line with demand. It's more complicated than that, of course, especially in China where jobs and stability are number one. Too much capacity, too little profits making everyone a little bit tired, a phenomenon the Chinese call involution or neijuan in Chinese to roll up or coil up.  Born in China, formative years in Hong Kong and Singapore, and now in America, Lizzi gives us an insider's view of the realities oin the ground in the PRC as we get ready to head in to 2026. 

Earlier this year, I enjoyed a delicious lunch in Mexico City with Luis Lozano,  the former CEO of Toyota de Mexico. Luis immediately impressed me with his knowledge of the Mexican car market, the shock of hundreds of thousands of Chinese imports since 2020 and the possibilities that Chinese automakers will try to make Mexico a production base for exports to the United States. One of his goals, Luis told me, was to open American eyes to the current realities of Chinese cars. They are good value for money, they are coming our way. And they are not turning back. So, which companies are ones to watch? Are they going to build plants in Mexico as they have done in Brazil, Spain and Thailand? How soon? In today's conversation we get answers to those questions here on the Driving With Dunne podcast. 

Jorge Guajardo, former Mexican ambassador to China and partner at DGA Global, dives into the turbulent waters of U.S.-China relations. He discusses the recent meeting between Trump and Xi, exploring whether a 'trade truce' can effectively address deep-rooted tensions. Guajardo reveals how China's rapid tech deployment contrasts with U.S. regulatory values and highlights Mexico's strategic position amid these giants. From supply chain challenges to auto industry vulnerabilities, he underscores the urgency for Western awareness and action as China accelerates its decoupling.

Patrick McGee, a Financial Times journalist and author of *Apple in China*, shares insights into how Apple became intricately linked with China. He discusses the 'China arc' and how Chinese companies gradually extracted knowledge from Apple, making them fierce competitors. The conversation highlights Apple's massive investment in supplier training and the immense pressure on engineers in China. McGee warns of the rising capabilities of Chinese competitors and delves into the implications for Apple's future amidst escalating geopolitical tensions.

Mitchell Presnick is a Harvard visiting fellow and entrepreneur who founded Super 8 in China. He discusses the misconceptions Western leaders have about negotiating with China, emphasizing the need for intense preparation and continual negotiation. Presnick highlights China's historical focus on stability and its advancements in technology. He introduces the concept of 'owls'—pragmatic negotiators who eschew ideology—and shares insights from his experience in drafting China’s franchise laws and addressing challenges with franchise partners.

In the good old days of driving, we needed to make sure the mechanical things worked: Things like the engine, of course, the steering and the brakes. We were in charge of driving the car.  Now, for better and for worse, technologies are moving in and taking over. Sensors, cameras, on-board computers, software. Those powerful technologies are mostly invisible to the naked eye. They give us directions and infotainment; they help to avoid accidents. The more advanced technologies can now deliver us from Point A to Point B without human intervention. That's quite amazing when you think about it. And more than a little bit scary. How do we know that the sophisticated hardware and software will operate safely every time we get into the car? The reality is that there is no such thing as a perfect system, at least not yet. But there are ways to minimize our risks. That's where QNX comes in. The company, based in Ottawa, Canada, delivers real-time operating systems for safety critical applications.   As COO John Wall says, the modern car is becoming a robot on wheels. How can we know for sure that our robot remains our best friend, always looking out for our safety and security? John Wall has answers, today, on the Driving With Dunne podcast. 

By now, you have probably heard that there are more than 200 million connected cars on the road today. But, wait a minute. What is a connected car – and how does a connected car make our lives better? A simple way to think about it is that a connected car is one that is linked to the internet, just like our phone. And like our smartphones, that linkage gives cars an ability to deliver countless new features and functions via over-the-air updates. Connected cars are new in another way: For the first time in over one hundred years, the automotive industry relies on a different  industry - cellular - for key innovation. So, how exactly do automakers engage with the tech providers, the ones holding the valuable tech patents? Enter Avanci, a company formed in 2016 to serve as a bridge and broker between the tech powerhouses and the automotive giants. Joining this episode of the Driving With Dunne podcast is Laurie Fitzgerald, President, Avanci Vehicle. Laurie walks us through Avanci's unique role working as a vital go-between for global carmakers and the global tech providers. Laurie also shares her very first experience driving in Ireland, a right-hand drive market. Was the car connected? 

It is hard for Americans to imagine not being No. 1. The US has been the leading industrial, economic and military power since the end of WWII. But now America confronts a challenger that appears to be bigger, faster and more ambitious. That challenger is China. The PRC now manufactures one third of the world's cars, sixty percent of EVs, seventy percent of batteries and utterly dominates battery supply chains. How did Chinese companies get so powerful so quickly? What can America and the West learn from China's rapid ascendancy? And what can we do to compete going forward?  Joining me today on the Driving wWith Dunne podcast is Kyle Chan, author of the widely read and highly respected newsletter, High Capacity. Kyle reveals China's secret superpowers – many of which might appear surprisingly ordinary. But they're not. 

How do we begin to get our minds around the global blitz of tariffs unleashed by the Trump Administration. Is it madness or is there a method to the madness? One thing is certain: Donald Trump has definitely captured the attention of  leaders in Asia, Europe, Mexico and Canada. They are trying to come to terms with arguably the greatest economic and trade shock in decades. Joining us today is Wendy, Cutler, one of the most skilled negotiators on the planet. She knows trade, she knows tariffs and she has more than 30 years of experience negotiating trade deals. I ask Wendy to talk us through the current state of trade and tariffs, what she thinks President Trump is trying to get done and how this great tariff blitz is likely to land. Let's just say she is not brimming with optimism. But she does have some advice for White House -  if the phone rings.

When it comes to China, most Americans are mostly in the dark. Don't believe me? Just quiz your friends. Ask them to name the five largest cities in China. Or to tell you the difference between people in Fujian and Sichuan, or Beijing and Guangzhou? Or how many cars China exported last year.  Is China's economy booming on the back of record exports or reeling from a property meltdown and tanking consumer confidence? How many of us can say we know for sure. How many of us are in regular communication with people in China? Here to fill the void is Emily Feng, author of a tremendous new book called Let Only Red Flowers Bloom. Ms Feng brings to life the joys and sorrows, advances and setbacks of ordinary people in China. And she explains why, under Xi Jinping, people are encouraged to bloom red.