Keyu Jin

and this is what I also discuss in my book, is that it is inefficient, although maybe it's necessary.

The amount of waste of investments plowed into these companies that will ultimately just go under, but also the misallocation of resources because it's led by the state, are some of the downsides.

But I guess on balance, it's been positive because look at China's internal combustion engine effort.

Nothing, right?

Semiconductors.

Thanks to Biden, thanks to Trump, it's improved dramatically.

But all these things that they tried to do before, they couldn't do.

But when it's a new thing, like something that there's no incumbent, no particular advantage in any country, actually, China is really spearheading these sectors.

Well, you need to be elected and reelected, right?

Is that what your electoral base cares about, right?

In China, it's what the central government, your boss, cares about.

If you ask the consumers, they'd rather you spend on social spending, right?

The things we talked about that stimulates consumption, on education, on healthcare, things that stimulate demand.

So that's the political, it's the difference of political system.

The Chinese are both the most patient and the most short-termist economic actors I met.

The patience I don't need to explain because I think the political continuity means that they can make plans for two decades ahead, right?

Even longer.

The investment of Chinese parents in their children is...

is a multi-decade long project.

And they save, you know, Chinese people love to save because they think that they'll have even more money if they save that money rather than spend it on a ski vacation.