How China Dominates the Global Export Business | Louis Gave

Decoupling the US economy from China’s is essential to strengthening our long-term economic resiliency and national security. Meanwhile, China is doing the same thing—decoupling its economy from ours. Yet China’s export business is booming.

Gavekal CEO and renowned China expert Louis Gave says that China now exports more to other emerging markets than it does to the US and western Europe. Here’s Louis:

“China's trade is absolutely booming. The investments that China made 10 years ago in things like the One Belt One Road, the Silk Road Fund, the Asian Infrastructure Investment Bank, all the things that we laughed at and said, ‘Oh, you want to have trade with Kazakhstan? Who cares? Sure, have it. It's all yours.' The reality is, if you look at the BRICS countries, China now does more trade with the BRICS countries than it does with the United States."

Louis notes that, in some ways, China might be more capitalistic than the US, which essentially stopped allowing companies to fail after the 2008/2009 financial crisis.

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Time stamps:
00:00 – Introduction
01:05 – China’s $100 billion trade surplus
08:42 – Why China’s stock market isn’t that important
12:34 – Quest for resiliency
20:52 – How China subsidizes the auto industry
24:06 – China favors competition more than the US
27:16 – Commodities hoarding?
31:15 – The energy trade
36:53 – All the trouble in France
40:05 – Inflation troubles in Japan

[wingkei]

keep printing money and blame China for taking US jobs. that will help US economy every US president will tell you that.

[aburetik]

China leads the world in 37 out of 44 critical technologies and America only leads in 7, according to the Australian Strategic Policy Institute (ASPI).

[litesp]

The US gets praise for leading in trade. When China leads, it's called distortion.

[MichaelZhuang]

The US has capitalism for the common folks and socialism for big businesses and their owners. China has socialism for the common folks and capitalism for big businesses and their owners.

[davidrichards]

The top market for China is China, the biggest consumer market in the world. China's 2nd biggest market is SE Asia, a region of nearly 1-billion people with a real economy PPP that now exceeds Western Europe ex-Russia and keeps growing ten times faster each year than the EU. The rest of Asia is currently China's #3 market. The US and EU are China's 4th and 5th largest markets now.

[yvonwheel]

China is uplifting the developing world!🎉

[fredfrond]

For the record China manufactured and installed 350 GW of solar and wind power in 2023. 350 GW of power is the equivalent of 120 nuclear power plants. Since China spends the equivalent of over $300, 000, 000, 000 USD a year on oil. The Chinese will be happy to pay a $100 billion USD a year or more for wind, solar and nuclear.

[daniellee]

The Chineae save approximately 30% of their earnings, they will transition to a consumption based economy when global recession goes full blown. The CPC had foresight and worked towards poverty alleviating for two clear reasons. They broight over 800 million citizens out of extreme poverty. First when the ppl have savings, jobs, healthcare, education and Hope for the future, there will be peace and harmony instead of revolutions. Secondly its building a broad based population that can power internal consumption when the sh"t hits the fan and global growth grinds to a halt. Thats the kinda government we need, one who plan ahead and ensures its ppl will survive the current western stupidity and wokeness. Billions to fund wars and conflict but no money for the homeless.

[kindface]

Absolutely fantastic discussion.
Great that you could have Louis V Gave on this show.

[mechannel]

28:00 One big reason commodity prices are down is that before the Ukraine war, everything went through Chicago. After the West sanctioned Russia, the Brics countries accelerated their own payment system, so that data is no longer readily available to traders in the West, and commodity traders in Chicago are now flying blind. Kevin from the Inside China Business channel did an episode on this a few days ago

[dontaskmewhy]

Every 5-10 years the China govt re-gear and focus the new productivity development and make relevant economic plan and policies for the next 10-50 years.

In between, the govt cleaning up the side effects and bad effects of development from before in other words re-adjusting the structure of the economy.

One reason why EV is making huge wave in China is that the car electric chargers or various kinds are widely available all over the country.

[Aramsa-Khan]

It is not China not wanting to trade with the USA. It is the USA not wanting to trade with China by sanctioning and threatening China. If the USA lose, don't blame China. Blame those who walk the corridor of power.

[seekan]

China is smart, strategic and forward thinking. It becomes the global dominance through trade, respect and collaboration which the world should learn from ❤

[gk]

I've told people that the US stock market is an economic hostage situation. Our government is forced to cater to Wallstreet or face a lot of angry voters who were just bankrupted by Hedgefund short positions.

[garzila]

Diverifying is key. Thats why they were able to give the US the middle finger

[yu-jdjg]

China focuses on Mutual Respect and Win-Win Trade with other countries. Whereas the Hegemonic US focuses on Domination and Destabilization in other countries

[kevintewey]

XI JING PING It's not communism,

( they are wrong)
.Describing ideas coming from his head the top-down

.They come from the people and he listens to the people

.That's something Western citizens don't understand leaders that listen to their people.😂
I'm sorry you're so deprived
COPE🎉

[peterelliott]

To find out what China is going to be all about in 5 or 10 years examine their 5 year plans. They're spot on with their planning as we all know.

[davidlai]

As a Hong Kong resident, I agree with Louis that unaffordable property prices and resulting high cost of living was a factor behind the riots n 2019.

[winfredcoorengel]

This should have a lot more views great fair and objective analysis