In this episode of Econ 102, Erik Torenberg and Richard Hanania discuss China's economic and technological landscape, touching on topics from demographics and financial challenges to its dominance in the electric tech stack. They address concerns about China's real estate crash, debt, and the impact of government industrial policies on lending and innovation, while also highlighting China's surprising strength in high-tech sectors due to a competitive ecosystem and quality human capital. The conversation shifts to U.S. competitiveness, particularly in drone manufacturing and the electric tech stack, advocating for strategic industrial policy, investment in battery technology, and addressing bottlenecks like land use and permitting to rival China's manufacturing prowess.
