In a communist system, capital and the means of production are owned by the state. But after the China reform(Socialism with Chinese characteristics), the means of production were privately owned. But not with capital.So the government is the biggest investor That means Chinese companies don't really care With shareholders.Even though the company value is small. If their company is good like increasing gdp The government is happy to provide capital in return for tax benefits. In the west looking for capital For projects and building factories is through the free market and selling shares.But in China, 80% of the capital is controlled by the government through state banks (state-owned enterprises).Companies are easily given loans as long as the loans are used to produce products or develop technology. And the profits have to be paid back (like bonuses to shareholders) to the government in the form of taxes.
Two weeks is a long time in Chinese Economics, now they are at least double printing bank notes, why only use a serial number once when you can copy it like everything else. Local government bonds have junk status. Who will be left to flush this failed policy?
I noticed that as well, lol, they still have a competitive advantage than countries like Mexico because they have the infrastructure and stability for now.
China is already like 10 years ahead of everyone they already start outsourcing a lot of their lower tier manufacturing to other countries to save on labor cost for well over 10 years
Clarification - BYD sells more cars than Tesla nowadays, but Tesla still sells more EVs (BYD did sell slightly more in Q4 2023, but Tesla has been firmly in the lead again since). About half of BYD's sales are hybrids. They also don't really consider each other direct competitors. They're both focused on ICE (internal combustion engine) conquests. Another important point is that Tesla's Shanghai factory is fully owned by Tesla. They were not forced to form a joint venture with a local Chinese company like most other western operations (as you correctly pointed out in the video).
BYD owns their supply chain fully. Tesla doesn’t. BYD has those numbers without North America but their Mexico factory is coming online next year. Tariff free baby
That explained a lot about why BYD didn't do well outside its domestic market even before the introduction of tariffs. Hybrid cars are a more mature market with more experienced competitors (most of whom are from Japan) and winning is way more difficult.
Western companies being shocked when they go to China and get their designs stolen is like pouring a glass of water over your head and being suprised your wet
At least for the corporations involved, they ain't shocked. The chinese made it clear since the beginning that they're exchanging market for technology and skill. Western companies made billions upon billions by making use of cheap chinese labor and doing business in china. They have nothing to complain.
There's a big difference when those subsidies gets used to dump cheap products and drive competition out. That's the real problem, not subsidies in and of itself
@animeboi6503 or saying it in another way: China's just so big in subsidizing entire industries that other countries get really scared / protective. Even worse, China's super efficient in subsidising, supporting future technologies instead of old lobbies (e.g. electric cars in China, vs combustion engines in Germany)
Once upon a time it was the Japanese copying Western technology. This is now forgotten and what everybody thinks of Japanese products is that they are of great quality. Same thing happened with Korean cars and smartphones in latest years. China has the know how to build great quality products, the difficulties they have are in getting high margins from them while being made and designed by Chinese company. One such company that has done great on global level is the drone designer and manufacturer DJI that has the largest share of the market globally and offers great quality products. I expect more chinese companies to do the same.
The Romans were notorious for copying others in the beginning and applying their tools to their own culture. Humans are generational learners and it was Issac Newton himself that said he was only able see further because he stood on the shoulders of giants. As an entrepreneur I've built an entire business based off the knowledge of people who were more successful than me by slightly tweeking their information for my own gain.
Another great example is how a lot of people think Egyptian architecture was the beginning, but actually that style of architecture started in Mesopotamia.
All you are saying is that the Chinese government did a great job in developing the country and become competitive with the West. But what you are not saying is that Western companies also received massive subsidies from the governments such as Intel and the car industry. Sour grapes.
@@valeriogiajvia165 Obviously you have seen a lot of fake news and your IQ has been fooled by the media. Such a system does not exist in China. There are many foreigners living in China on RUclips who have debunked this rumor.
I think it's funny how you went over the whole china stealing everything bit, then immediately went "Now, all this is impressive but..." as transition to the next segment.
If you view matters only from a Western standpoint, you'll never understand what China's doing. China does not have monetary hegemony, nor do they think current western capitalism is on a sustainable path. It is restructuring the entire economy, through pain, mind you, to sustain moderate growth rather than rapid and speculative gains which inevitably lead to economic inequality. Simply put, CCP is not a huge fan of wealth disparities, personally I think they consider 1950s America as a balanced model, and anything after Regan as suicidal. Westerners often praise Deng and condemn Xi for undoing what Deng had achieved. Guess they never bothered to read the actual Dengism doctrines. Xi is doing exactly what Deng had planned out.
This is a very insightful comment. Could you point me to some resources to read about this? Was the tax on the wealthy relaxed after the 1950s? Was it something like revenue beyond a certain amount (a couple million?) would get taxed 90% or something and rich US folks lobbied politicians to get rid of it?
Except China's economic miracle is not possible without a globalised western capitalism. It's still highly export oriented, many to the West exactly. Meanwhile the local are not as beneficial as most Western developed countries or even developing countries, as shown by its low domestic consumption in its GDP.
@@steinwaldmadchen Well, the low domestic consumption is because of the low prices, you would be surprised of how cheap things can be in China. I would say if not for China's extremely cheap goods, the world would've already be fighting over two-headed cows with clubs and stones.
Fact check, new research from the Australian Strategic Policy Institute (ASPI) shows that China is now leading the way in 57 out of the 64 technologies assessed by its Critical Technology Tracker, which has now been updated to cover the last 20 years.Aug 30, 2024. And ASPI receives funding from defence contractors such as Lockheed Martin, BAE Systems, Northrop Grumman, Thales Group and Raytheon Technologies. It also receives funding from technology companies such as Microsoft, Oracle Australia, Telstra, and Google.
After watching a lot of your videos, my take is that your videos are informative on the surface but carry a significant load of western idealogy at their core.
As a person in the Global South, we know the risk of getting our children educated in western world. When they return home, the local must use them 'selectively' in a careful manner, rather than "you're educated in the West, you get promoted to the top, done!"
I miss your longer, more in-depth videos. This new format of yours is also good: it's easier to comprehend and I always have time to watch it during breakfast, but I just miss cracking my skull over why exactly economy of a particular country works a certain way.
If you pay $2 for a screwdriver and get angry when it breaks, it's not China's fault, it's YOURS. Also, is anyone getting tired of the same thumbnail when it comes to China videos? The crumbling buildings and flashy headers make my eyes roll, even if the content is top notch.
What people fail to realise is that the Chinese are perfectly capable of making a quality screwdriver. But they're not capable of making a $2 quality screwdriver. A quality screwdriver costs $10. Western businesses pay 50 cents for a screwdriver, sell it for $2 dollars, it breaks, and we blame China. If you are prepared to pay the price, Chinese businesses are prepared to produce a quality product.
The issue is that nowadays it's very hard to tell apart which products are of good quality and which are not, specially when shopping for a product you're not that familiar with. Some companies often sell $2 screwdrivers online for $15 trying to trick the buyer into thinking they're getting a higher quality product.
A bit out of context, but I'd love to see a deep dive into Georgism in one of your future videos. It’s a fascinating economic philosophy with a lot of relevance to today’s issues like wealth inequality and sustainable development. I’d really like to hear your take on it!
The scale of that container shipping yard shown at 1:06 was so astonishing, I had to play this segment numerous times at 1/4 speed just to get a proper feel of its sheer immensity.
How can EE satisfy unlimited demand for content in a finite world? I didn't have anything relevant to say but I was super early so I figured I'd say something
The world is finite but also dynamic so he can revisit the same nation without being repetitive because nations' conditions have changed. I mean, look how many videos he made on China or USA.
I don't think the west can prevent china being able to compete. In my mind, it's better to help india and south east asia, develop fast enough, that they can also compete and not be dominated by china.
@@Naikomi95😂😂😂India best achievements so far India's Hunger index 2013: 63rd rank 2022: 107th rank India's Happiness index. 2013: 111th rank 2022: 136th rank India's press freedom rank 2013:79th 2022: 150the the fourth pillar of worlds largest democracy is no more India's unemployment rate 2013:4.9% 2023:7.5% Unemployment rate never increase in growing economy.. india is growing only on paper and by loan India's Debt before 2014: ₹55 lakh crore 2023: ₹155 lakh crore India's GDP from 2004 to 2014: $709 billion to 2.04 trilion (almost triple) India's GDP from 2014to 2024: $2.04 trillion to 3.6 trilion (expected)...not even double
I do some purchasing for an American manufacturing company, China is good for mid market stuff, their high tech can’t compete with Germany Japan or American, and their low end stuff is undercut by Indian and south East Asian manufacturing but they have great prices for middle of the market stuff
Their electric cars are better than Germany, Japan or America (other than Tesla). This may change if subsidies drop off - but for now they are highly competitive.
For the last 20 years I worked with a lot of equipment from different countries and of course mostly chinese for the last 10 years. I totally back your statement. China left the low/disposable level to reach mid level now, but their high end is not a match to Japan/Korea/Germany, yet. They can reach such level but they will need at least 15 years more to mature all of their technologies and policies.
Depends on your definition of high tech. They're the best at stuff like renewables for example, but they still have a ways to catch up with mature technologies
@@WilliamSantos-cv8rr3-5 years thanks to the us conteinment of china using south korea and japan. Japan is broke same with south korea. China will get there.
what china creates Ice cream Guns Paper Everything in your house Everything in your family house Guns Rockets Space rocket tech Ink Cooking Books Modern batteries Modern phones I can keep going and going
Housing and cars are the two most expensive purchases. Build dense affordable housing so close to work that workers no longer need to drive to work therefore no longer need to own cars. Taken to extremes, workplaces with +200 should convert 20%-50% of their parking spaces to affordable employee rentals.
Nothing to do with housing affordability. Housing is even more Unaffordable in China than US. In China the median house costs 30x the median salary, think about that.
The chinese strategy is very complex and one of the take aways from the epic economics channel from the “american dream” video they had posted tells me that china has secretly been creating the current world, it seems like china is well aware of the economic war that they needed to fight and win to become a true superpower, from them holding more american bonds than anyone else, and selling them exactly as america needs to sell more bonds to fight inflation while keep the economy afloat, it seems like american law makers woke up a little later into the reality of the new great games, i wonder if the bureaucrats of the us can match up
😂😂Umm yes we can . China created/invented Ice cream Guns Paper Everything in your house Everything in your family house Guns Rockets Space rocket tech Ink Cooking Books Modern batteries Modern phones I can keep going and going
As an American, I have to say that I have an issue with EV related tariffs and bans. American car manufacturers have a notoriously poor or, at a minimum, inconsistent record of making quality vehicles with any reasonable warranty when compared to international manufacturers. So rather than just making better cars and competing, GM, Ford, and Tesla lobby the government to stop the sales of Chinese vehicles. On most metrics, the EV manufactured in China exceeds the standards at Tesla. Add in the fact that Teslas launch model hasn't had any significant updates or upgrades in FIVE years, and you can better see my point. And when I say significant, I don't mean dumb interfaces that turn your lights on when someone walks by. I mean better assembly standards, better mileage, faster charging. All of these metrics are significantly better on the China EV models. Also, what happened to Elons commitment to low cost EVs that everyone can afford? Again, China has Tesla beat on that one.
In a communist system, capital and the means of production are owned by the state. But after the China reform(Socialism with Chinese characteristics), the means of production were privately owned. But not with capital.So the government is the biggest investor That means Chinese companies don't really care With shareholders.Even though the company value is small. If their company is good like increasing gdp The government is happy to provide capital in return for tax benefits. In the west looking for capital For projects and building factories is through the free market and selling shares.But in China, 80% of the capital is controlled by the government through state banks (state-owned enterprises).Companies are easily given loans as long as the loans are used to produce products or develop technology. And the profits have to be paid back (like bonuses to shareholders) to the government in the form of taxes.
"Social promotion" in Chinese upper education has been a historical problem. In this video I saw a brief mention of "equal education" but I suspect that wealthy and well connected students don't have to work to hard to achieve PhD level diplomas. That is not a purely Chinese issue, but prior experience gave me jaw dropping examples (that I am not free to discuss) of senior level engineering incompetence matched with an inability to tolerate feedback or suggestions from qualified Western personnel. Trying to say this nicely, but I found it more reasonable to decline their business.
The fact that the security risk from Chinese manufactures is codified in Chinese law is all the proof needed. As for the IP theft risk, the horse bolted the stable, and no company is willing to risk it, and there is no real way any individual company can do something to revert that opinion.
china did what American and European companies must do now, Bring expertise to their country by making copartnership in industrial development, even if by force.
"no company is willing to risk it" so many m0rons posting BS like this its sad Apple, LVMH, Tesla, Microsoft, Porsche, etc. biggest companies in the world do a lot of business there and yet here you are with your dumb comment
😂😂😂Umm yes we can . China created/invented Ice cream Guns Paper Everything in your house Everything in your family house Guns Rockets Space rocket tech Ink Cooking Books Modern batteries Modern phones I can keep going and going
China has an industrial policy. The west doesn't. Thats why they handle all these issues way smoother, even when things get bumpy. The economy isnt just for profit. Thats the key
Mean we are seeing china industrial policy spinning out of control, failed to trantision to consumption, over construction of housing, huge waste of resources on high speed rail
I guess you never worked with Chinese manufacturers. Small donation to local CCP beurocrat, and you build a new bike electric engine factory in "nature reserve" with illegal power connection to the local power plant. Great regulation...
I find it bizarre that people that can produce (almost) nothing are saying that people who produce (almost) everything are in trouble. Sure, China is in trouble from the perspective of modern overfinancialized western economic model. In real world they will be fine.
@@Naikomi95 they will. There is a need, there is money and there are a lot of smart people. They have a majority of chips their economy needs, just not the ones from the last few years. China won't collapse because AI research slows down for a decade.
@@arsic094 Smart people like you? 😂😂 China is running out of chips for their cheap smartphones. It's really bad. China has to work with kodak😂😂😂😂😂😂😂😂😂😂
Are there actually any major economies doing well at the moment? Europe is in a mess, my own country (UK) has been decimated for good by Tory austerity, I keep hearing rumours of a recession in the US and Japan has massive demographic problems. Is another global recession inevitable?
What happened to the Epic Economics channel? You had some great ahd depth econonic videos there. I particularly enjoyed the Asian crash bubble and the Bernays videos. Can't find rhe channels anymore 😢
I would love to hear a more holistic view of this topic. 90% of this video frames it in the way of “China vs The West” but the world is much bigger than that. Couldn’t help but hear the bias in this video too
@@Hfjsjsgjddbidhdjeu well china is the pioneer 😂😂Umm yes we can . China created/invented Ice cream Guns Paper Everything in your house Everything in your family house Guns Rockets Space rocket tech Ink Cooking Books Modern batteries Modern phones I can keep going and going
Oversimplified but that's certainly a big factor. 20-25% youth unemployment before they stopped reporting suggest they have lots of problems on that. In addition, the 'boomer' version in China are all those now 40-70 yr olds that were able to buy property in the 80's to 2000's and into mid 2010's.
What's the point? Their big problem is that there have nowhere near enough youth. China's period as top dog (which, sorry MAGA types, it already is) is going to be quite limited.
And that seems like the west is disappointed in did not expect China to rise at this level they expected to be like another African country or like India
The video completely skips on the fact that China's population is falling and its fertility rate is low, getting lower, and foreshadows a very steep drop in population. There's also wages, especially in factories, that only keep increasing as there aren't as many bodies to fill in positions in them. The great migration from the countryside into the cities has been severely hampered by the rising cost of living in cities. There is also the issue with youth unemployment, which is predominantly university educated youth that studied very hard all their life because they were promised job security and a good future. They aren't willing to take up neither the factory jobs or farming jobs their parents worked in and which the government keeps pushing. Factory jobs are being squeezed out of China out into neighboring countries, along with the COVID fiasco more countries are hellbent on diversifying their supply chains because China proved to be an unreliable major link in them. China is too big to continue relying on its export-economy, it needed to get its people to consume more when the times were better. Since COVID hit and the faults in China's "socialism with Chinese characteristics" became more apparent, people are saving more than ever before and taking money out of the local economy. China is risking a Japanese-style lost decade.
Don't know what you people are talking about. On the one hand, China's population is declining and its population resources are insufficient. It also says that China's unemployment rate is high, and a large number of talented people can not get enough jobs.
@@月隐谷 aside with the decreasing population there's also the issue with the population getting older, much older. Closer to half of those 400 million are going to be pensioners.
That is why the Chinese economy is independent and is hardly affected by sanctions compared to the EU, because they try to copy or innovate quickly in response to change in order not to depend too much on external factors. Even if exports decrease, their internal economy will be sustained, and that is what matters.
I see a great deal of discussion in the comments and while i agree that this is a very sensitive topic i have been working on chinese analysis for a good bit now and i enjoy factual data more than just straight up fights. I believe that while EE did a great job in explaining the surface of the problem one of the biggest problems in the chinese economy is domestic demand and balance sheet losses. There is a high amount of losses in real estate that have yet to be incurred leading to a phenomenon
You could also mention Chinese infrastructure also fits the title with bridges in the middle of nowhere set up by local governments to meet Beijing’s growth targets and this leading to massive debt and unneeded infrastructure.
They do it diffrently in China. Instead of building on demand, they build it beforehand when land is still cheap. It can also boost value of the land around it, increasing demand
@@Foquro That’s the logic, but increasingly the projects are justified by wishful thinking instead of actual trends. China’s domestic market is already saturated for real estate, itself an achievement because Chinese citizens have had nowhere else they can trust with their investment funds.
I find it shocking that people everywhere always think that they are more smart, resourceful, informed, and rational than teams of scientists, surveyors, experienced engineers and financial planners who work for the municipal decision-makers. Do they make mistakes and pursue misleading goals? Sure. Do they make such mistakes at a scale you imagined? Probably not. Because people aren't dumber in China than most other places on the earth.
😂😂😂Umm yes we can . China created/invented Ice cream Guns Paper Everything in your house Everything in your family house Guns Rockets Space rocket tech Ink Cooking Books Modern batteries Modern phones I can keep going and going
I see a great deal of discussion in the comments and while i agree that this is a very sensitive topic i have been working on chinese analysis for a good bit now and i enjoy factual data more than just straight up fights. I believe that while EE did a great job in explaining the surface of the problem one of the biggest problems in the chinese economy is domestic demand and balance sheet losses. There is a high amount of losses in real estate that have yet to be incurred leading to a phenomenon called balance sheet recession. If you don't want to look it up then just imagine a similar state as japan in the 90s. A low domestic demand further emphasizes the similarities to japan in the 90s. A country with more than a billion people cannot just live from exports. In fact the gdp of chine is made up of 43% investments (the western nations on average have a 25%). But with investment on products that have a low or negative margin such as electric vehicles chinas future for now seems grim. With almost 63% of the solar panels they produce right now going to waste showing a large amount of junk exports they have a very bumpy road ahead.
You will know when you see the comments below. One side still lives in its own incomparable sense of superiority. I thought I was still the center of the world.😅
One thing you realized watching Western economists talking about China is they either have no idea what they are talking about and keep making contradictory statements or they know what they are talking about but they are lying to their audience.
The subsidies effect can be massive, China had 300 EV car manufacturers in 2019, now has about 100 still. Neither number is sustainable by market, they were result of massive government subsidies. It remains to be seen how it works on market rules.
Talking about subsidies, the US has been subsidizing its economy through the currency hegemony of the US dollar, its military brute force, and bullying its adversaries and even allies (like Japan) for the better part of the past century. These subsidies are never mentioned when the US acuses China of 'unfairly subsidizing' its industries.
China's EVs are already becoming notorious for catching on fire ... uncontrolled acceleration ... and literally falling apart due to the low quality parts, low quality steel, and bad welds ...
American Apparel (and many others) proved that you can produce commodities in the US, and out compete Chinese imports. It's a political choice to produce in China, not a 100% economic choice.
It's not. You CANNOT compete with China (or other low cost mfg countries) on products that are price sensitive. You can carve a niche in those industries but that's about it. They can compete on products that aren't price sensitive. American apparel declined and no longer what it was as it faced stiffed competition on pricing.
Acting as if a Chinese technology brought overseas would not be copied directly also... The truth is that working and living in China is so competitive, that everyone is trying their hardest to make money to simply support their family.
Largely because the global rules were designed by the USA for their own benefit. Remember the time when Samsung got an injunction against Apple in the USA for patent violations and the POTUS signed an executive order nullifying the order? Most people don't. Every country subsidies industry based on politics and to gain international competitive advantage. Here in Australia we do it for wine and some primary industries. The USA massively subsidies agriculture, tech, media and advanced manufacturing. They gave 10-20 billion to Intel to make it more competitive just recently. China is just less sophisticated in their espionage and market tampering. The state there steals IP and gives it to industry. In the USA the state employs industry as contractors to steal IP for the state. The global rules really just boil down to "if you try to actually compete against the USA or enforce domestic law on their interests in your territory, then you get crushed."
Yep, but they would say that is because those rules were created by the US and are rigged in the US' interest - which is true. And they'd further point out that the US has itself consistently ignored those rules anyway whenever domestic politics has suited it too - which is also true.
Impossible to export to the US and EU due to tariffs. Only Brics left - but Russia, Brazil and South Africa are bankrupt. India is not a friend of China.
It feels weird to worry about a country misallocating capital by making things too cheap. Like, if you gave everybody in the US extra money via UBI (or debt-fueled payments to American corporations, which is what we actually do), we could pay that to china, and they'll still subsidize their production to under-price their goods. So the government forces them to make things, then export them. We make currency out of thin air and give it to them for cheap stuff, which is good for us. The only problem being that in the mean-time, they're developing industry and capital while our skills are getting rusty.
@@goodfortunetoyou I 100% do. U don’t. Oversimplified statements like “making money out of thin air” is what people say to discredit fiat currency. Bet u didn’t know “fiat currency”
@@goodfortunetoyou “A fiat currency is a national currency that is not pegged to the price of a commodity such as gold or silver. The value of fiat money is largely based on the public's faith in the currency's issuer, which is normally that country's government or central bank” There are lots of decisions and a process to “creating Money”. If they simply just print money out of thin air, you get hyperinflation like in Venezuela and Argentina
@@goodfortunetoyou oh, and even when they decide to increase money supply, it’s not simply printing money out of thin air. A central bank introduces new money into an economy by purchasing financial assets or lending money to financial institutions. Commercial banks then redeploy or repurpose this base money by credit creation through fractional reserve banking, which expands the total supply of "broad money"
Due to their policies and actions against other countries, They lost lots of tourism, they have higher tariffs to deal with, they lost business in India, and they lost customers across the world as they are increasingly conscious about buying Chinese goods or services. This all has to be putting some dent in their economy
America has 750 overseas bases, they surround China, and conduct military operations right off their coast. We all know who the aggressor is...except you, apparently.
Nah their main market is not their neighbors, but US and Europe, as long as these countries import bulk of goods then it is good for china, their main concerns is china's human rights violation, so as long as this fulfilled then it's all good for them
How do they subsidse all these products if they already have a massive pile of debt? Ye sure they can just take on more debt but that doesnt rly sound like a recipe for success.
Meanwhile on Chinese social media millions of people are jobless and in massive in debt on now worthless properties, with an exodus of excess workers back to their rural towns and whole sectors of non-essentials and services collapsing because people aren't spending.
that's not only in china also china produce to much highly educated people, and less blue color workers, at least they need a decade to shift those old industries education to the newly like Ev and the green technology
@@marvelv212would you call a person spending all their energy sprinting at the beginning of a marathon “winning”? Sure they’re ahead for a while, but they don’t stay ahead.
@@ExHyperion You think they are sprinting while you are what? They’ve overcoming everything you throw at them. They are beating you at your “own” game!
Australia doesn't have a car industry to protect but where are all the affordable Ev's that China has been making for the last decade? I think our government is absolutely protecting the importing of cars industry and I mean protecting the huge money they make from legacy car companys who can't sell their high emissions junk anywhere else. Its the only reason that makes sense why there are still so few options here.
Western civilization is definitely on the decline when he insinuated that China being too good and too fast is a bad thing. Kinda like saying someone being in the top of the class is a bad thing.
It's not clear at all how solar energy is a highly technical field? Panel quality improvements have been stagnating since hte 80s. The only place to innovate is on price which, undoubtedly, cannot be done in a high wage country. EV cars are a fairer comparison though again, stimulated overproduction to the point of dumping. It remains to be seen if these can be sustained without the support of high income countries.
The Chinese approach towards intellectual property rights will be its biggest downfall when it comes to its climb up the value chain. R&D efforts are collaborative in nature with multiple people working across country lines. If the patent and IP ownership isn't respected, others will stop collaborating with you. The fact remains that globally people don't trust China with their IP. Even if China doubles their R&D expenditure, it will still find itself working in isolation. And you can only grow so much working alone.
And that's further compounded by the fact that if you're a known theft of I.P., it's quite likely that any R&D done by China is going to be stolen by somebody else anyways to 'get back' at them.
It feels weird to worry about a country misallocating capital by making things too cheap. Like, if you gave everybody in the US extra money via UBI (or debt-fueled payments to American corporations, which is what we actually do), we could pay that to china, and they'll still subsidize their production to under-price their goods. this XAI900T is well done, thanks for the headsup
R&D spending at 6:02 is outdated and/or incorrect. I’m too lazy to check which one. The US spent almost $1 trillion in 2023, while China spent about $450 billion. I know it's from the OECD, which makes it even more embarrassing. You can't apply the PPP adjuster for the whole economy to a subsector; you have to calculate a separate PPP specifically for that subsector. Rookie mistake by the OECD.
China needs to use their people's tax money to improve their social safety net instead of spending it all on subsidizing exports. Chinese folk won't consume precisely because they live in a cyberpunk dystopia with no social security.
Social Security isn’t feasible for them due to their demographics. That system is a Ponzi scheme reliant on infinite population growth and they ain’t gonna jump on that at this point
yes，I am a Chinese. In China, women retire at the age of 50, and men retire at the age of 60. The pension is about the same as the salary of a working person. With the aging of the population, the burden is getting heavier and heavier. The government is considering delaying the retirement time. There is no free medical care in China. The medical insurance they implement can only reimburse 80-95%. Individuals still need to pay 10-15% of the cost. And many items are not covered. For example, you need to pay a consultation fee, which is as high as $0.50. For example, it costs $50 to do a CT scan, and you have to endure waiting in line for more than half an hour. It is very inefficient. Why not use the subsidy in these areas? All the money is used to support agents, NGOs, military bases around the world, and show off aircraft carriers at other people's doorsteps. I really hope MCGA
@@howell5499 Waiting half an hour? How about waiting for months just to get appointment.Health insurance works the same as in Europe. China will survive.For US I don't know.
I think in the short term they will still struggle a couple of years maybe even longer but they will return. I mean what most over see is just how big in numbers China is . For me its like authors for movie, books or comics have most of the time no sense how big the universe is. I think even the Chinese don't see most of the time the USA +EU together are 700 mio China are 1.4B twice the amount of people this is a huge strain on resources globally but also gives the Chinese at least theoretically a big enough market for developing heir own high-tech sectors which can be pure locally . Yes they means they need to get independent of import and export but they kinda get forced into this way anyway.
The CCP right now is china's biggest weakness. If china became democratic then it will grow even faster.Since even in a democracy china will still act like an autocracy since all people there think in the same wavelength.
@@hououinkyouma1458true and imagine how far ahead China would have been if the ccp lost the Civil War. The west was the KMT’s ally in WWII, Taiwan/ROC became democratic eventually and the tech transfer to China would have proceeded much faster. The cultural revolution and great leap backward would never have happened, meaning the average citizen would not have gone through horrific struggle and cultural and IQ culling. There may still have been regional tension with the ROC but if the mainland today was an ally not an enemy a democratic China would be ahead of the US on so many metrics. Shame how history played out.
What a stupid, click-bait title and story. As if it's possible to get too good too fast. We can't compete with them, and it's not getting better for us.
Why are blind workers being called out here? Their wage is slightly above the minimum wage because they have no other mean of supporting themselves beside their job. It's not like they can drive Uber...
Now I understand, That is why the Chinese economy is independent and is hardly affected by sanctions, because they try to copy or innovate quickly in response to change in order not to depend too much on external factors. Even if exports decrease, their internal economy will be sustained, and that is what matters.
@@adamsaciid4919 you have a point bro its just they do it in China with billions of people and channel that human right violation to work force productivity
13:13 China is moving so far that EE cannot keep up lol 😂 China EV, drones and Robocs are already without peers. Next time, do your homework properly...
China has been making and exporting high-quality goods for twenty years already. People who think Chinese goods are automatically junk are like that guy I met in 2010 or so who was ranting about cheap Japanese junk.
Some of these amnesic commentors forget that the subsidies were justified then in the name of going carbon neutral as fast as possible. These days carbon neutrality is a dead topic in view of relative economic stagnation and cost of living crises.
Elevate your business today at www.odoo.com/r/nag
Odoo!! Wohoooo!!! Love it
yeah great all those EE sales and quote you guys make hey LOL
In a communist system, capital and the means of production are owned by the state.
But after the China reform(Socialism with Chinese characteristics), the means of production were privately owned. But not with capital.So the government is the biggest investor
That means Chinese companies don't really care With shareholders.Even though the company value is small. If their company is good like increasing gdp The government is happy to provide capital in return for tax benefits.
In the west looking for capital For projects and building factories is through the free market and selling shares.But in China, 80% of the capital is controlled by the government through state banks (state-owned enterprises).Companies are easily given loans as long as the loans are used to produce products or develop technology. And the profits have to be paid back (like bonuses to shareholders) to the government in the form of taxes.
Pretty wild seeing a ERP advertised on EE.
Two weeks is a long time in Chinese Economics, now they are at least double printing bank notes, why only use a serial number once when you can copy it like everything else. Local government bonds have junk status. Who will be left to flush this failed policy?
The paper cited for Chinese labour costs is from 2007. They are now at parity or even more expensive than certain nations listed, such as Mexico.
I noticed that as well, lol, they still have a competitive advantage than countries like Mexico because they have the infrastructure and stability for now.
@@djgodigod yep... Indians could work for free and the product would still cost more than in China.
China is already like 10 years ahead of everyone they already start outsourcing a lot of their lower tier manufacturing to other countries to save on labor cost for well over 10 years
@@djgodigod Yes, spot on.
So. Is this how we are going to operate from now? Moving countries to keep costs low? First Japan. Now China. Next India?@@djgodigod
Clarification - BYD sells more cars than Tesla nowadays, but Tesla still sells more EVs (BYD did sell slightly more in Q4 2023, but Tesla has been firmly in the lead again since). About half of BYD's sales are hybrids. They also don't really consider each other direct competitors. They're both focused on ICE (internal combustion engine) conquests. Another important point is that Tesla's Shanghai factory is fully owned by Tesla. They were not forced to form a joint venture with a local Chinese company like most other western operations (as you correctly pointed out in the video).
I can confirm the veracity of this post.
BYD sells more Ev's in numbers, it's just that the total value of their sales is smaller than Tesla (since Tesla's per unity cost is higher).
BYD owns their supply chain fully. Tesla doesn’t. BYD has those numbers without North America but their Mexico factory is coming online next year. Tariff free baby
BYD sells more . they’re even making electric buses for some cities in the UK
That explained a lot about why BYD didn't do well outside its domestic market even before the introduction of tariffs. Hybrid cars are a more mature market with more experienced competitors (most of whom are from Japan) and winning is way more difficult.
Western companies being shocked when they go to China and get their designs stolen is like pouring a glass of water over your head and being suprised your wet
At least for the corporations involved, they ain't shocked. The chinese made it clear since the beginning that they're exchanging market for technology and skill. Western companies made billions upon billions by making use of cheap chinese labor and doing business in china. They have nothing to complain.
They chose economic greed over sovereignty.
Indeed, they were surprised their wet
If china has mastered anything it's the art of corporate espionage, reverse engineering, and counterfeits.
Our elites chose money over their own people
All countries subsidize. They'll only complain about it when they start losing
Western hypocrisy on full display.
How is china success other countries losing? You Russian?
That's how the world works
There's a big difference when those subsidies gets used to dump cheap products and drive competition out. That's the real problem, not subsidies in and of itself
@animeboi6503 or saying it in another way: China's just so big in subsidizing entire industries that other countries get really scared / protective.
Even worse, China's super efficient in subsidising, supporting future technologies instead of old lobbies (e.g. electric cars in China, vs combustion engines in Germany)
Once upon a time it was the Japanese copying Western technology. This is now forgotten and what everybody thinks of Japanese products is that they are of great quality. Same thing happened with Korean cars and smartphones in latest years. China has the know how to build great quality products, the difficulties they have are in getting high margins from them while being made and designed by Chinese company. One such company that has done great on global level is the drone designer and manufacturer DJI that has the largest share of the market globally and offers great quality products. I expect more chinese companies to do the same.
The Romans were notorious for copying others in the beginning and applying their tools to their own culture. Humans are generational learners and it was Issac Newton himself that said he was only able see further because he stood on the shoulders of giants. As an entrepreneur I've built an entire business based off the knowledge of people who were more successful than me by slightly tweeking their information for my own gain.
Another great example is how a lot of people think Egyptian architecture was the beginning, but actually that style of architecture started in Mesopotamia.
@@WildsDreams45 Indeed, same pattern can be seen throughout history. I'm curious, what business did you build?
Monkey see, Monkey do. It's just how humans learn stuff. IP Law has only existed for a very short time in human evolution.
China has the knowledge, just not the attitude to spend the premium required to make non-disposable normal.
All you are saying is that the Chinese government did a great job in developing the country and become competitive with the West. But what you are not saying is that Western companies also received massive subsidies from the governments such as Intel and the car industry. Sour grapes.
Yon ang akala Ng China kahit konti lng ang barko Ng PH eemportante may bantay at pag ginalaw.nla nka bantay ang mga PH Navy at mga kaalyado
West is not controlling my speech
@@valeriogiajvia165 Apparently you have forgotten the disaster that befell Edward Joseph Snowden and Julian Paul Hawkins.
@@sdsdj626 apparently I don't a social credit score
@@valeriogiajvia165 Obviously you have seen a lot of fake news and your IQ has been fooled by the media. Such a system does not exist in China. There are many foreigners living in China on RUclips who have debunked this rumor.
I think it's funny how you went over the whole china stealing everything bit, then immediately went "Now, all this is impressive but..." as transition to the next segment.
everyone steals. where do youtube shorts come from?
@@lennywatchesstuff Great so can I take your stuff?
@@joeschmoe3665 No but you can make a cheaper copy of them!
@@lennywatchesstuffGreat so can I take your stuff
@@lennywatchesstuff it can from vine
If you view matters only from a Western standpoint, you'll never understand what China's doing.
China does not have monetary hegemony, nor do they think current western capitalism is on a sustainable path. It is restructuring the entire economy, through pain, mind you, to sustain moderate growth rather than rapid and speculative gains which inevitably lead to economic inequality. Simply put, CCP is not a huge fan of wealth disparities, personally I think they consider 1950s America as a balanced model, and anything after Regan as suicidal.
Westerners often praise Deng and condemn Xi for undoing what Deng had achieved. Guess they never bothered to read the actual Dengism doctrines. Xi is doing exactly what Deng had planned out.
This is a very insightful comment. Could you point me to some resources to read about this? Was the tax on the wealthy relaxed after the 1950s? Was it something like revenue beyond a certain amount (a couple million?) would get taxed 90% or something and rich US folks lobbied politicians to get rid of it?
Except China's economic miracle is not possible without a globalised western capitalism. It's still highly export oriented, many to the West exactly.
Meanwhile the local are not as beneficial as most Western developed countries or even developing countries, as shown by its low domestic consumption in its GDP.
@@steinwaldmadchen Well, the low domestic consumption is because of the low prices, you would be surprised of how cheap things can be in China. I would say if not for China's extremely cheap goods, the world would've already be fighting over two-headed cows with clubs and stones.
@@abhishekbhandari6362 Relaxed financial regulations after Reagan got shot.
Because Westerners think. Deng Xiaoping liked all the low-end products made in China.
Fact check, new research from the Australian Strategic Policy Institute (ASPI) shows that China is now leading the way in 57 out of the 64 technologies assessed by its Critical Technology Tracker, which has now been updated to cover the last 20 years.Aug 30, 2024. And ASPI receives funding from defence contractors such as Lockheed Martin, BAE Systems, Northrop Grumman, Thales Group and Raytheon Technologies. It also receives funding from technology companies such as Microsoft, Oracle Australia, Telstra, and Google.
😂😂
Is almost as if China already won.
Exactly why it is unreliable as these companies just want more funding from the government. It's fearmongering
@@Naikomi95 is this someone’s burner account?
After watching a lot of your videos, my take is that your videos are informative on the surface but carry a significant load of western idealogy at their core.
Said the china bot
That's all they know, they don't want know Western's robbery history, they refuse to believe other civilization is btter than them.
Western ideology doesn’t mean it’s false.
Marxism is a Western ideology
As a person in the Global South, we know the risk of getting our children educated in western world. When they return home, the local must use them 'selectively' in a careful manner, rather than "you're educated in the West, you get promoted to the top, done!"
How chinese industry became too good, too fast- but at what cost?
Things that are not "industry", like branding value, common personal attitudes, and actual human benefits that socialism promises.
What cost? How about a growing population to continue to support the economy?
@@AvoidTheCadaver or implement AI and robots
没有如何。😮
更好全面的工业和科学已经完成，世界明珠灯塔企业中国有五分之三。污水处理和垃圾回收焚烧发电站的利用零污染，领先一切国家你信吗。
代价已经成为过去式的啦。天蓝水绿无处不在
@@AvoidTheCadaverEthnic unity is the fabric of every civilization, it has fallen apart in the West.
I miss your longer, more in-depth videos. This new format of yours is also good: it's easier to comprehend and I always have time to watch it during breakfast, but I just miss cracking my skull over why exactly economy of a particular country works a certain way.
Will you be examining Draghis report on the future of EU competitiveness and it's possible impacts?
No, it's illegal to talk about the uk online
This
If you pay $2 for a screwdriver and get angry when it breaks, it's not China's fault, it's YOURS.
Also, is anyone getting tired of the same thumbnail when it comes to China videos? The crumbling buildings and flashy headers make my eyes roll, even if the content is top notch.
What people fail to realise is that the Chinese are perfectly capable of making a quality screwdriver. But they're not capable of making a $2 quality screwdriver. A quality screwdriver costs $10. Western businesses pay 50 cents for a screwdriver, sell it for $2 dollars, it breaks, and we blame China. If you are prepared to pay the price, Chinese businesses are prepared to produce a quality product.
What if every screwdriver I can find was made there after major economic manipulation?
The issue is that nowadays it's very hard to tell apart which products are of good quality and which are not, specially when shopping for a product you're not that familiar with. Some companies often sell $2 screwdrivers online for $15 trying to trick the buyer into thinking they're getting a higher quality product.
@@elinope4745 The Chinese can produce high quality products if you want to pay the price.
@@J_X999 I prefer products that keep my neighbors employed.
A bit out of context, but I'd love to see a deep dive into Georgism in one of your future videos. It’s a fascinating economic philosophy with a lot of relevance to today’s issues like wealth inequality and sustainable development. I’d really like to hear your take on it!
at least they are not stealing cultural influences coming from todays murica and UK , smart peoples indeed
The scale of that container shipping yard shown at 1:06 was so astonishing, I had to play this segment numerous times at 1/4 speed just to get a proper feel of its sheer immensity.
if you have no idea how large it is. China largest port alone import/export more cargo than the entire usa port combine
also the port are highly automation, only a small portion worker working at the entire port compare to other traditional port
wow thanks for pointing out. Impressive
How can EE satisfy unlimited demand for content in a finite world?
I didn't have anything relevant to say but I was super early so I figured I'd say something
just say 'first' like the rest of the NPCs that are desperate for attention
The world is finite but also dynamic so he can revisit the same nation without being repetitive because nations' conditions have changed.
I mean, look how many videos he made on China or USA.
@@allhailderpfestor4839he didn’t say anything new though that he hasn’t said before
He just made a video for the sake of making a video
I don't think the west can prevent china being able to compete. In my mind, it's better to help india and south east asia, develop fast enough, that they can also compete and not be dominated by china.
so its only west interests 😃what will happen india and south east asia after that🤔
@@adamsaciid4919 more high paying jobs increase standard of living and tax revenue
@@adamsaciid4919become competition like China with a hope that they could be an ally.
@@angsern8455 i don't think that they will allow them to be developed countries
Don’t be naive. Once India and SEA countries get richer they’ll be targeted just like how China is being targeted for being too rich and powerful.
Ask anyone doing business with the Chinese. Ask them to compare their work ethic, education, and responsiveness with the Mexican or Indian workers.
Indian>Chinese >Mexican
@Naikomi95 in average, I beg to differ, the Chinese manufacturing is ages away from the Indian one atm
@@Naikomi95 Indian only talking, no action
@@Naikomi95😂😂😂India best achievements so far
India's Hunger index
2013: 63rd rank
2022: 107th rank
India's Happiness index.
2013: 111th rank
2022: 136th rank
India's press freedom rank
2013:79th
2022: 150the the fourth pillar of worlds largest
democracy is no more
India's unemployment rate
2013:4.9%
2023:7.5%
Unemployment rate never increase in growing
economy.. india is growing only on paper and by
loan
India's Debt
before 2014: ₹55 lakh crore
2023: ₹155 lakh crore
India's GDP from 2004 to 2014:
$709 billion to 2.04 trilion (almost triple)
India's GDP from 2014to 2024:
$2.04 trillion to 3.6 trilion (expected)...not even
double
@@ianchu8232 the Indian engineers I work with are so much better better then the Chinese and all of you wumao you get so offemded😂
I do some purchasing for an American manufacturing company, China is good for mid market stuff, their high tech can’t compete with Germany Japan or American, and their low end stuff is undercut by Indian and south East Asian manufacturing but they have great prices for middle of the market stuff
What do you purchase?
Their electric cars are better than Germany, Japan or America (other than Tesla). This may change if subsidies drop off - but for now they are highly competitive.
For the last 20 years I worked with a lot of equipment from different countries and of course mostly chinese for the last 10 years. I totally back your statement. China left the low/disposable level to reach mid level now, but their high end is not a match to Japan/Korea/Germany, yet. They can reach such level but they will need at least 15 years more to mature all of their technologies and policies.
Depends on your definition of high tech. They're the best at stuff like renewables for example, but they still have a ways to catch up with mature technologies
@@WilliamSantos-cv8rr3-5 years thanks to the us conteinment of china using south korea and japan. Japan is broke same with south korea. China will get there.
That was a surprisingly balanced view of the current Chinese economy.
especially from a Aussie right winger.
@@morganangel340 Bruh he gushes about Norway. How is he right wing?
@@ArawnOfAnnwn watch his opinions about other places, especially his home AUS.
what china creates
Ice cream
Guns
Paper
Everything in your house
Everything in your family house
Guns
Rockets
Space rocket tech
Ink
Cooking
Books
Modern batteries
Modern phones
I can keep going and going
@@ZakiHaider-y9obots broken
The best way to reduce labor costs in the US would be to make healthcare and housing more affordable and put a stop to hiden fees
Housing and cars are the two most expensive purchases. Build dense affordable housing so close to work that workers no longer need to drive to work therefore no longer need to own cars. Taken to extremes, workplaces with +200 should convert 20%-50% of their parking spaces to affordable employee rentals.
Hey stop being reasonable and focus on culture wars. That way our elected officials won't have work on actually improving anything.
Nothing to do with housing affordability. Housing is even more Unaffordable in China than US. In China the median house costs 30x the median salary, think about that.
@@xiphoid2011 Don't some companies have cheap employee housing, with cafeteria and buses that takes them to work?
What!? You want people to live well in their own country? Commie! 😂
The chinese strategy is very complex and one of the take aways from the epic economics channel from the “american dream” video they had posted tells me that china has secretly been creating the current world, it seems like china is well aware of the economic war that they needed to fight and win to become a true superpower, from them holding more american bonds than anyone else, and selling them exactly as america needs to sell more bonds to fight inflation while keep the economy afloat, it seems like american law makers woke up a little later into the reality of the new great games, i wonder if the bureaucrats of the us can match up
"Move Fast and Break Things" works even better in the environment of Authoritarian Corportalism.
America is demonstrating exactly how productive that strategy is.
Move fast and copy things.
@@michaelnurse9089 COPE
authoritarian government not corporations. if anything corporations dont have that much power in china as they do in the west
😂😂Umm yes we can .
China created/invented
Ice cream
Guns
Paper
Everything in your house
Everything in your family house
Guns
Rockets
Space rocket tech
Ink
Cooking
Books
Modern batteries
Modern phones
I can keep going and going
As an American, I have to say that I have an issue with EV related tariffs and bans. American car manufacturers have a notoriously poor or, at a minimum, inconsistent record of making quality vehicles with any reasonable warranty when compared to international manufacturers. So rather than just making better cars and competing, GM, Ford, and Tesla lobby the government to stop the sales of Chinese vehicles.
On most metrics, the EV manufactured in China exceeds the standards at Tesla. Add in the fact that Teslas launch model hasn't had any significant updates or upgrades in FIVE years, and you can better see my point. And when I say significant, I don't mean dumb interfaces that turn your lights on when someone walks by. I mean better assembly standards, better mileage, faster charging. All of these metrics are significantly better on the China EV models.
Also, what happened to Elons commitment to low cost EVs that everyone can afford? Again, China has Tesla beat on that one.
In a communist system, capital and the means of production are owned by the state.
But after the China reform(Socialism with Chinese characteristics), the means of production were privately owned. But not with capital.So the government is the biggest investor
That means Chinese companies don't really care With shareholders.Even though the company value is small. If their company is good like increasing gdp The government is happy to provide capital in return for tax benefits.
In the west looking for capital For projects and building factories is through the free market and selling shares.But in China, 80% of the capital is controlled by the government through state banks (state-owned enterprises).Companies are easily given loans as long as the loans are used to produce products or develop technology. And the profits have to be paid back (like bonuses to shareholders) to the government in the form of taxes.
Watching from Guyana 🇬🇾
Sorry, I can’t right now
No thanks I’ll watch from my couch instead
No thanks, I'll watch from my skibidi toilet.
Surinam 🇸🇷
You mean from East Venezuela?
"Social promotion" in Chinese upper education has been a historical problem. In this video I saw a brief mention of "equal education" but I suspect that wealthy and well connected students don't have to work to hard to achieve PhD level diplomas. That is not a purely Chinese issue, but prior experience gave me jaw dropping examples (that I am not free to discuss) of senior level engineering incompetence matched with an inability to tolerate feedback or suggestions from qualified Western personnel. Trying to say this nicely, but I found it more reasonable to decline their business.
The fact that the security risk from Chinese manufactures is codified in Chinese law is all the proof needed. As for the IP theft risk, the horse bolted the stable, and no company is willing to risk it, and there is no real way any individual company can do something to revert that opinion.
IP theft? you mean US companies suing each other for IP theft every year?
china did what American and European companies must do now, Bring expertise to their country by making copartnership in industrial development, even if by force.
"no company is willing to risk it" so many m0rons posting BS like this its sad
Apple, LVMH, Tesla, Microsoft, Porsche, etc. biggest companies in the world do a lot of business there and yet here you are with your dumb comment
" no company is willing to risk it"
Apple, Tesla, LVMH, Microsoft, Nvdia, etc (you know basically every big company) would like a word
😂😂😂Umm yes we can .
China created/invented
Ice cream
Guns
Paper
Everything in your house
Everything in your family house
Guns
Rockets
Space rocket tech
Ink
Cooking
Books
Modern batteries
Modern phones
I can keep going and going
I like how they're coming out with so many new CRM's. Competition drives down prices!
China has an industrial policy. The west doesn't. Thats why they handle all these issues way smoother, even when things get bumpy. The economy isnt just for profit. Thats the key
@@dannydenison6253 Bingo.
Mean we are seeing china industrial policy spinning out of control, failed to trantision to consumption, over construction of housing, huge waste of resources on high speed rail
"West" is not a country. A country can have an industrial policy a vauge group of countries with conflicting economic intrests can't.
I guess you never worked with Chinese manufacturers. Small donation to local CCP beurocrat, and you build a new bike electric engine factory in "nature reserve" with illegal power connection to the local power plant.
Great regulation...
@@Alaryk111 So replace “West” with the any one of the G7 countries including the U.S. What part of this is hard?
I find it bizarre that people that can produce (almost) nothing are saying that people who produce (almost) everything are in trouble.
Sure, China is in trouble from the perspective of modern overfinancialized western economic model. In real world they will be fine.
So germany is the biggest economic power
@@Naikomi95 it was quite big until it cut itself from its resource base for emotional reasons. China isn't doing anything similar.
@@arsic094 they doing something way worse, that's why China has no decent microchips any more
@@Naikomi95 they will. There is a need, there is money and there are a lot of smart people.
They have a majority of chips their economy needs, just not the ones from the last few years.
China won't collapse because AI research slows down for a decade.
@@arsic094 Smart people like you? 😂😂
China is running out of chips for their cheap smartphones. It's really bad. China has to work with kodak😂😂😂😂😂😂😂😂😂😂
Are there actually any major economies doing well at the moment? Europe is in a mess, my own country (UK) has been decimated for good by Tory austerity, I keep hearing rumours of a recession in the US and Japan has massive demographic problems. Is another global recession inevitable?
In a nutshell, yes, it seems so for the short-term. Albeit the "short-term" might mean over the next 5-15 years.
Austerity is not the reason the UK economy is failing. The reason is high taxes on plumbers and low taxes on bankers.
'Bad Vibes' do not mean "another global recession [is] inevitable"
bro, US is doing fantastic. What are you talking about? - ah yes, bots
There's always going to be an economic crisis at some point, just like there are going to be good economic times at some point
What happened to the Epic Economics channel?
You had some great ahd depth econonic videos there. I particularly enjoyed the Asian crash bubble and the Bernays videos. Can't find rhe channels anymore 😢
I would love to hear a more holistic view of this topic. 90% of this video frames it in the way of “China vs The West” but the world is much bigger than that. Couldn’t help but hear the bias in this video too
How much important innovation is occuring outside of the West/East Asia? I don't think very much.
@@Hfjsjsgjddbidhdjeu well china is the pioneer
😂😂Umm yes we can .
China created/invented
Ice cream
Guns
Paper
Everything in your house
Everything in your family house
Guns
Rockets
Space rocket tech
Ink
Cooking
Books
Modern batteries
Modern phones
I can keep going and going
Thanks!
Basically, China needs to focus on improving the youths' lives if they want to continue to grow or all its rapid growth will be for nothing.
Yep.
Truuu
How can they? They will need to pay them more. In doing so, their competitiveness will fade away. That’s their whole spiel, cheaper products.
Oversimplified but that's certainly a big factor. 20-25% youth unemployment before they stopped reporting suggest they have lots of problems on that. In addition, the 'boomer' version in China are all those now 40-70 yr olds that were able to buy property in the 80's to 2000's and into mid 2010's.
What's the point? Their big problem is that there have nowhere near enough youth. China's period as top dog (which, sorry MAGA types, it already is) is going to be quite limited.
It's confusing to see a lot of people's opinions. On the one hand, China is collapsing. Later, he said that China was a threat.😢
And that seems like the west is disappointed in did not expect China to rise at this level they expected to be like another African country or like India
Whereas it leaves Russia for dead.
The video completely skips on the fact that China's population is falling and its fertility rate is low, getting lower, and foreshadows a very steep drop in population. There's also wages, especially in factories, that only keep increasing as there aren't as many bodies to fill in positions in them. The great migration from the countryside into the cities has been severely hampered by the rising cost of living in cities. There is also the issue with youth unemployment, which is predominantly university educated youth that studied very hard all their life because they were promised job security and a good future. They aren't willing to take up neither the factory jobs or farming jobs their parents worked in and which the government keeps pushing. Factory jobs are being squeezed out of China out into neighboring countries, along with the COVID fiasco more countries are hellbent on diversifying their supply chains because China proved to be an unreliable major link in them.
China is too big to continue relying on its export-economy, it needed to get its people to consume more when the times were better. Since COVID hit and the faults in China's "socialism with Chinese characteristics" became more apparent, people are saving more than ever before and taking money out of the local economy. China is risking a Japanese-style lost decade.
Literally half your points are due to the deliberate deflation of the Chinese property bubble. All that typing for nothing.
❤❤
Don't know what you people are talking about. On the one hand, China's population is declining and its population resources are insufficient. It also says that China's unemployment rate is high, and a large number of talented people can not get enough jobs.
Even if the proportion of China's population is declining. After 100 years, it dropped to 400 million. Isn't that what America is now?
@@月隐谷 aside with the decreasing population there's also the issue with the population getting older, much older. Closer to half of those 400 million are going to be pensioners.
Watched this when it came out and I'm still wondering... In what field isn't china considered low quality?
That is why the Chinese economy is independent and is hardly affected by sanctions compared to the EU, because they try to copy or innovate quickly in response to change in order not to depend too much on external factors. Even if exports decrease, their internal economy will be sustained, and that is what matters.
true
I thought that the internal economy was having issues because people are underpaid and not spending?
@@iambicpentakill971 lol they get paid but not spending those luxury brands from west
Lol china economy is not independent, they are neither food or fuel independent and their whole economy is base on exporting exporting
Sustained by what? China relies on imports just to feed and fuel itself.
I see a great deal of discussion in the comments and while i agree that this is a very sensitive topic i have been working on chinese analysis for a good bit now and i enjoy factual data more than just straight up fights. I believe that while EE did a great job in explaining the surface of the problem one of the biggest problems in the chinese economy is domestic demand and balance sheet losses. There is a high amount of losses in real estate that have yet to be incurred leading to a phenomenon
Interesting.
You could also mention Chinese infrastructure also fits the title with bridges in the middle of nowhere set up by local governments to meet Beijing’s growth targets and this leading to massive debt and unneeded infrastructure.
GDP "growth" (really predetermined targets) through malinvestment.
They do it diffrently in China. Instead of building on demand, they build it beforehand when land is still cheap. It can also boost value of the land around it, increasing demand
@@Foquro That’s the logic, but increasingly the projects are justified by wishful thinking instead of actual trends. China’s domestic market is already saturated for real estate, itself an achievement because Chinese citizens have had nowhere else they can trust with their investment funds.
@@doujinflipalso add that many of those project and the .marginal utility that have, making them a net loss in any scenario
I find it shocking that people everywhere always think that they are more smart, resourceful, informed, and rational than teams of scientists, surveyors, experienced engineers and financial planners who work for the municipal decision-makers. Do they make mistakes and pursue misleading goals? Sure. Do they make such mistakes at a scale you imagined? Probably not. Because people aren't dumber in China than most other places on the earth.
Their metal material quality is still horrible. I'll only buy OEM or made in America car parts. I hate replacing things twice
Most car parts come from China, just assembled in America
Who told u that ? Boeing makes parts in india and usa .
Remind me again how that's working
I am writing a paper on Chinese economics with rule by law any advice
@@Normalguy28980 Go live in China.
advice: remove your western bias
😂😂😂Umm yes we can .
China created/invented
Ice cream
Guns
Paper
Everything in your house
Everything in your family house
Guns
Rockets
Space rocket tech
Ink
Cooking
Books
Modern batteries
Modern phones
I can keep going and going
Second the XAI900T move is saving us mark my words
I see a great deal of discussion in the comments and while i agree that this is a very sensitive topic i have been working on chinese analysis for a good bit now and i enjoy factual data more than just straight up fights. I believe that while EE did a great job in explaining the surface of the problem one of the biggest problems in the chinese economy is domestic demand and balance sheet losses. There is a high amount of losses in real estate that have yet to be incurred leading to a phenomenon called balance sheet recession. If you don't want to look it up then just imagine a similar state as japan in the 90s. A low domestic demand further emphasizes the similarities to japan in the 90s. A country with more than a billion people cannot just live from exports. In fact the gdp of chine is made up of 43% investments (the western nations on average have a 25%). But with investment on products that have a low or negative margin such as electric vehicles chinas future for now seems grim. With almost 63% of the solar panels they produce right now going to waste showing a large amount of junk exports they have a very bumpy road ahead.
Can't thank you enough for your work. Genuinely informative, objective and unbiased content. Keep it up!
You will know when you see the comments below. One side still lives in its own incomparable sense of superiority. I thought I was still the center of the world.😅
One thing you realized watching Western economists talking about China is they either have no idea what they are talking about and keep making contradictory statements or they know what they are talking about but they are lying to their audience.
Hello wumao
@@Naikomi95 What a loser. Cannot even come up with a proper rebuttal
@Naikomi95
Yup, thats the best ya can do..LoL.
@@ulooqulg oh nice another wumao
When you are bullied, it gives you strength. 🍀
The subsidies effect can be massive, China had 300 EV car manufacturers in 2019, now has about 100 still. Neither number is sustainable by market, they were result of massive government subsidies. It remains to be seen how it works on market rules.
Talking about subsidies, the US has been subsidizing its economy through the currency hegemony of the US dollar, its military brute force, and bullying its adversaries and even allies (like Japan) for the better part of the past century. These subsidies are never mentioned when the US acuses China of 'unfairly subsidizing' its industries.
China's EVs are already becoming notorious for catching on fire ... uncontrolled acceleration ... and literally falling apart due to the low quality parts, low quality steel, and bad welds ...
@@theethicsofliberty4642 I mean Tesla isnt doing any better....
@@Foquro ... Adding the United States and Europe, Tesla occurrences are rare... but in China ... Chinese EVs occurrences are daily ...
@@theethicsofliberty4642 There are also way more EVs in China
It does help that they don't blow their subsidies on stock buybacks, but on R&D. Looking at you, Boeing.
American Apparel (and many others) proved that you can produce commodities in the US, and out compete Chinese imports. It's a political choice to produce in China, not a 100% economic choice.
It's not. You CANNOT compete with China (or other low cost mfg countries) on products that are price sensitive. You can carve a niche in those industries but that's about it. They can compete on products that aren't price sensitive. American apparel declined and no longer what it was as it faced stiffed competition on pricing.
Nope. Its not . Usa can't produce it as it's expensive and no one buys them . Not even Americans
Nope you can't chinese ppl too smart lol
Acting as if a Chinese technology brought overseas would not be copied directly also... The truth is that working and living in China is so competitive, that everyone is trying their hardest to make money to simply support their family.
Everyone here knows China isn't playing by global rules
We have known this they joined the WTO in 2001. A blind eye was always turned because cheap labour is more valuable than 'rules'.
Largely because the global rules were designed by the USA for their own benefit. Remember the time when Samsung got an injunction against Apple in the USA for patent violations and the POTUS signed an executive order nullifying the order? Most people don't.
Every country subsidies industry based on politics and to gain international competitive advantage. Here in Australia we do it for wine and some primary industries. The USA massively subsidies agriculture, tech, media and advanced manufacturing. They gave 10-20 billion to Intel to make it more competitive just recently.
China is just less sophisticated in their espionage and market tampering. The state there steals IP and gives it to industry. In the USA the state employs industry as contractors to steal IP for the state.
The global rules really just boil down to "if you try to actually compete against the USA or enforce domestic law on their interests in your territory, then you get crushed."
Yep, but they would say that is because those rules were created by the US and are rigged in the US' interest - which is true. And they'd further point out that the US has itself consistently ignored those rules anyway whenever domestic politics has suited it too - which is also true.
@@michaelnurse9089 the World also turn a blind eye to your never ending wars.
South American countries are playing by global ‘rules’ and they are doing really great. So is Japan, the Philippines……
Let's just call this the David Carradine School of Economics
Overcapacity has driven up the level of inventory across all Chinese industries which can not always be ironed out by exporting.
Impossible to export to the US and EU due to tariffs. Only Brics left - but Russia, Brazil and South Africa are bankrupt. India is not a friend of China.
It feels weird to worry about a country misallocating capital by making things too cheap. Like, if you gave everybody in the US extra money via UBI (or debt-fueled payments to American corporations, which is what we actually do), we could pay that to china, and they'll still subsidize their production to under-price their goods.
So the government forces them to make things, then export them. We make currency out of thin air and give it to them for cheap stuff, which is good for us. The only problem being that in the mean-time, they're developing industry and capital while our skills are getting rusty.
fiat currency isn't simply making currency out of thin air. That alone means nothing in the post is worthy of real consideration.
@Homer-OJ-Simpson Based on your statement, you don't understand how currencies work.
@@goodfortunetoyou I 100% do. U don’t. Oversimplified statements like “making money out of thin air” is what people say to discredit fiat currency. Bet u didn’t know “fiat currency”
@@goodfortunetoyou “A fiat currency is a national currency that is not pegged to the price of a commodity such as gold or silver. The value of fiat money is largely based on the public's faith in the currency's issuer, which is normally that country's government or central bank”
There are lots of decisions and a process to “creating Money”. If they simply just print money out of thin air, you get hyperinflation like in Venezuela and Argentina
@@goodfortunetoyou oh, and even when they decide to increase money supply, it’s not simply printing money out of thin air.
A central bank introduces new money into an economy by purchasing financial assets or lending money to financial institutions. Commercial banks then redeploy or repurpose this base money by credit creation through fractional reserve banking, which expands the total supply of "broad money"
7:16 as a veteran this clip bothers me to the coreeeee 😂😂😂😂 iykyk
If they would not aggress their neighbors they would be doing fine still
Due to their policies and actions against other countries, They lost lots of tourism, they have higher tariffs to deal with, they lost business in India, and they lost customers across the world as they are increasingly conscious about buying Chinese goods or services. This all has to be putting some dent in their economy
Who are these neighbors China aggress?
@@jianusheng3851 Philippines, India, Taiwan, etc.?
America has 750 overseas bases, they surround China, and conduct military operations right off their coast. We all know who the aggressor is...except you, apparently.
Nah their main market is not their neighbors, but US and Europe, as long as these countries import bulk of goods then it is good for china, their main concerns is china's human rights violation, so as long as this fulfilled then it's all good for them
How do they subsidse all these products if they already have a massive pile of debt? Ye sure they can just take on more debt but that doesnt rly sound like a recipe for success.
Meanwhile on Chinese social media millions of people are jobless and in massive in debt on now worthless properties, with an exodus of excess workers back to their rural towns and whole sectors of non-essentials and services collapsing because people aren't spending.
that's not only in china also china produce to much highly educated people, and less blue color workers, at least they need a decade to shift those old industries education to the newly like Ev and the green technology
@@adamsaciid4919Yet Beijing wants to double down on the their export-led paycheck-smothered model. China isn't even starting to remodel itself yet.
Trying to feel better. Rather pathetic. They are winning. They don’t need you
@@marvelv212would you call a person spending all their energy sprinting at the beginning of a marathon “winning”? Sure they’re ahead for a while, but they don’t stay ahead.
@@ExHyperion You think they are sprinting while you are what? They’ve overcoming everything you throw at them. They are beating you at your “own” game!
Australia doesn't have a car industry to protect but where are all the affordable Ev's that China has been making for the last decade? I think our government is absolutely protecting the importing of cars industry and I mean protecting the huge money they make from legacy car companys who can't sell their high emissions junk anywhere else. Its the only reason that makes sense why there are still so few options here.
China has 4x the population of the US. All else equal, of course it would be the larger economy.
“All else” is nowhere close to being equal
If you’re going to talk about Huawei, 5G, and security you really need to talk about Nortel’s technology (and mismanagement)
Western civilization is definitely on the decline when he insinuated that China being too good and too fast is a bad thing. Kinda like saying someone being in the top of the class is a bad thing.
Eastern civilization rise
West colonialism fall
The title is just click bsit😅😅
@@ZakiHaider-y9oAsians have been saying that for 100 years, but West still on top 😂
It's not clear at all how solar energy is a highly technical field?
Panel quality improvements have been stagnating since hte 80s. The only place to innovate is on price which, undoubtedly, cannot be done in a high wage country.
EV cars are a fairer comparison though again, stimulated overproduction to the point of dumping. It remains to be seen if these can be sustained without the support of high income countries.
The Chinese approach towards intellectual property rights will be its biggest downfall when it comes to its climb up the value chain. R&D efforts are collaborative in nature with multiple people working across country lines. If the patent and IP ownership isn't respected, others will stop collaborating with you.
The fact remains that globally people don't trust China with their IP. Even if China doubles their R&D expenditure, it will still find itself working in isolation. And you can only grow so much working alone.
globally people🤔who those people🤔western bro who are you when you saying global people don't trust china😅
And that's further compounded by the fact that if you're a known theft of I.P., it's quite likely that any R&D done by China is going to be stolen by somebody else anyways to 'get back' at them.
@@adamsaciid4919nice engrish word salad bit😁🤣😆
@@VinceroAlpha huh😀
@@adamsaciid4919 your grammar and explanation sucks and makes no sense
It feels weird to worry about a country misallocating capital by making things too cheap. Like, if you gave everybody in the US extra money via UBI (or debt-fueled payments to American corporations, which is what we actually do), we could pay that to china, and they'll still subsidize their production to under-price their goods. this XAI900T is well done, thanks for the headsup
4:42 a guy casually walking near a welding robot without protective glasses, no protective screen around the said robot... Yep, this is China
First
R&D spending at 6:02 is outdated and/or incorrect. I’m too lazy to check which one. The US spent almost $1 trillion in 2023, while China spent about $450 billion.
I know it's from the OECD, which makes it even more embarrassing. You can't apply the PPP adjuster for the whole economy to a subsector; you have to calculate a separate PPP specifically for that subsector. Rookie mistake by the OECD.
China needs to use their people's tax money to improve their social safety net instead of spending it all on subsidizing exports.
Chinese folk won't consume precisely because they live in a cyberpunk dystopia with no social security.
They already tried communism last century. 40 million starved to death.
Social Security isn’t feasible for them due to their demographics. That system is a Ponzi scheme reliant on infinite population growth and they ain’t gonna jump on that at this point
Not like the US is much different. I'm paying into social security with the expectation of not really getting it back.
yes，I am a Chinese. In China, women retire at the age of 50, and men retire at the age of 60. The pension is about the same as the salary of a working person. With the aging of the population, the burden is getting heavier and heavier. The government is considering delaying the retirement time. There is no free medical care in China. The medical insurance they implement can only reimburse 80-95%. Individuals still need to pay 10-15% of the cost. And many items are not covered. For example, you need to pay a consultation fee, which is as high as $0.50. For example, it costs $50 to do a CT scan, and you have to endure waiting in line for more than half an hour. It is very inefficient. Why not use the subsidy in these areas? All the money is used to support agents, NGOs, military bases around the world, and show off aircraft carriers at other people's doorsteps. I really hope MCGA
@@howell5499 Waiting half an hour? How about waiting for months just to get appointment.Health insurance works the same as in Europe. China will survive.For US I don't know.
I think in the short term they will still struggle a couple of years maybe even longer but they will return. I mean what most over see is just how big in numbers China is . For me its like authors for movie, books or comics have most of the time no sense how big the universe is. I think even the Chinese don't see most of the time the USA +EU together are 700 mio China are 1.4B twice the amount of people this is a huge strain on resources globally but also gives the Chinese at least theoretically a big enough market for developing heir own high-tech sectors which can be pure locally . Yes they means they need to get independent of import and export but they kinda get forced into this way anyway.
The CCP right now is china's biggest weakness.
If china became democratic then it will grow even faster.Since even in a democracy china will still act like an autocracy since all people there think in the same wavelength.
@@hououinkyouma1458true and imagine how far ahead China would have been if the ccp lost the Civil War. The west was the KMT’s ally in WWII, Taiwan/ROC became democratic eventually and the tech transfer to China would have proceeded much faster. The cultural revolution and great leap backward would never have happened, meaning the average citizen would not have gone through horrific struggle and cultural and IQ culling. There may still have been regional tension with the ROC but if the mainland today was an ally not an enemy a democratic China would be ahead of the US on so many metrics. Shame how history played out.
Boeing's supply chain was compromised by cheap Chinese titanium that was not up to specifications.
Boeing brought this on it self by ignoring the engineers warnings about cutting corners and only focusing on share holders.
Purest of pure BS.
'Cheap' causes flaws, not 'China'.
@@llubay3970 DEI
at this rate you mfs will soon start blaming china for the extinction of dinosaurs
A near perfect video, like always
What a stupid, click-bait title and story. As if it's possible to get too good too fast. We can't compete with them, and it's not getting better for us.
Why are blind workers being called out here? Their wage is slightly above the minimum wage because they have no other mean of supporting themselves beside their job. It's not like they can drive Uber...
Fake news: BYD has only ever surpassed Tesla sales for one month. The graph you showed is showing *FUTURE* sales as if they are in the past.
True EVs only - BYD sells a lot of ICE and hybrids.
Byd already defeated tesla
@@michaelnurse9089tesla uses byd batteries 😂
I just want to express my appreciation for these informative and well researched videos.
Now I understand, That is why the Chinese economy is independent and is hardly affected by sanctions, because they try to copy or innovate quickly in response to change in order not to depend too much on external factors. Even if exports decrease, their internal economy will be sustained, and that is what matters.
true
They still want western markets
It will devastate others but save itself by overinvesting in foreign now to promote export
by overinvesting it will destroy india , brazil like countrys opportunity
Simple they shut down human rights
and who don't shut down human rights in this world
@@adamsaciid4919 you have a point bro its just they do it in China with billions of people and channel that human right violation to work force productivity
@ronnianabalos4627 and that's what would happen in India and south east Asia in the coming decade
@@adamsaciid4919 could be
@@ronnianabalos4627 Adam is see see pee. He’s unable to state anything bad about CN
China two more weeks
>Repeat on RUclips forever
Chinese mindset: Work hard, save money and more work hard.
American dream: Not working at all and have a lot of money quickly.
CCP needs to go (or quit historical revanchism)
Increase white collar pool
Offshore manufacturing base
(not necessarily in order)
13:13 China is moving so far that EE cannot keep up lol 😂 China EV, drones and Robocs are already without peers. Next time, do your homework properly...
Im first so deserve a like
So much good content in here thank you, you talk very fast though
China has been making and exporting high-quality goods for twenty years already. People who think Chinese goods are automatically junk are like that guy I met in 2010 or so who was ranting about cheap Japanese junk.
Bee nice to see a video about Vanuatu
The guy talking needs to slooooow down. Talking way too fast. Faster than he use to speak
I agree but you can slow it down to .75 speed and it’s much easier to follow
Here I am speeding him up
Welcome to Australia Mate.
I play it on 0.75x
10:15 interesting pair of boats
Sinophobic title straight out of the State Department.
@@Ur3rdiMcFly u literally defend China taking lands from Bhutan and bullying other neighbors. How is the duck in Beijing?
Some of these amnesic commentors forget that the subsidies were justified then in the name of going carbon neutral as fast as possible. These days carbon neutrality is a dead topic in view of relative economic stagnation and cost of living crises.