Why growth investors can’t ignore China

In this episode of "Short Briefings on Long Term Thinking," Leo Kellyan interviews Helen Xiong, an investment manager at Baillie Gifford, about China's advanced manufacturing sector and its importance to global investors. Helen shares her unique perspective as someone with European, African, and Chinese heritage, emphasizing the importance of understanding cultural contexts when analyzing foreign markets. The discussion covers the growth of Extended Range Electric Vehicles (EREVs) in China, the issue of overcapacity in the electric vehicle market, and the transition of China's economy from property-led to advanced manufacturing. Helen also addresses regulatory risks and trade restrictions, highlighting investment opportunities in companies aligned with China's strategic priorities, such as Li Auto, an electric vehicle maker. Finally, they touch on China's recent stimulus measures and potential corporate governance reforms, as well as a book recommendation on moral psychology.