In this interview, Dwarkesh engages with Victor Shih, Director of the 21st Century China Center at UC San Diego, to explore China's political and economic landscape, with a particular focus on AI development. Shih provides insights into the decentralization and recentralization of China’s fiscal policies, the competence and political acumen of the Politburo members, and Xi Jinping's micromanagement style and his focus on maintaining the party's power. The discussion covers the local government debt situation, the role of financial repression, and the potential for AI to impact China's economic growth. Shih also shares his perspective on the likelihood of China invading Taiwan and the succession plan after Xi Jinping, as well as offering advice on understanding and observing the Chinese Communist Party's actions and policies.
