Dwarkesh Hirani

So people would want to invest.

The Silicon Valley would want to invest in China.

Why would getting rid of capital controls make capital go the other way?

And this goes into other questions of why is it the case that the Chinese stock market has performed so badly, even though the economy has grown a lot?

And then why is it the case that...

they have a current account surplus and they're basically accumulating T-bills.

The pattern you should see, obviously, is that they can earn much higher rates of return building productive things in China than accumulating 4% yield T-bills.

But the companies aren't socialist, right?

The companies are profit-seeking.

What is the sort of outer loop feedback like?

The thing which keeps the system disciplined, here there's private investors who care about actually earning a rate of return.

And so they're only going to invest in companies which they think have a viable shot of becoming huge companies that can actually be at the frontier in technology.

If these banks are not actually competing against real investors.

And it's not their money.

Exactly.

So they don't care.

But it seems like this is compatible with many of the world's leading companies being developed in the system.

So how is it working?

But doesn't this just belie the whole idea?

And CATL and DJI.