China Decode: How China Is Breaking the World of Trade

In this episode of China Decode, Alice Han and James Kynge discuss China's growing trade surplus and its push for technological self-sufficiency, which is reshaping global trade dynamics and causing concern among European countries like Germany. They analyze the implications of China's import substitution policies and its increasing competitiveness in key industries such as autos, with James highlighting Volkswagen's ability to produce electric vehicles in China at half the cost compared to Germany. The conversation shifts to geopolitical tensions in Asia, focusing on a phone call between Xi Jinping and President Trump regarding Taiwan, and the increasing defense spending by Taiwan amidst concerns over China's military superiority and the ambiguity of US support. Finally, they explore China's innovative approach to stimulating its service economy through extended school holidays and promoting domestic tourism, while also considering the structural challenges to boosting overall consumption. The hosts conclude with predictions about China's trade surplus and future economic policies.