Lizzi Lee on Involution, Overcapacity, and China's Economic Model

In this episode of the Sinica Podcast, Kaiser Kuo interviews Lizzi Lee, a fellow on the Chinese economy, about the 4th Plenary Session of the 20th Party Congress and the US-China trade relations. They discuss the communique's emphasis on domestic demand and household consumption, China's approach to increasing household consumption, and the challenges of cash transfers. They also explore the idea of measuring consumption in GDP accounting, the concept of "next China," and the framing of Chinese-style modernization. The conversation touches on China's involutionary price wars, the value-added tax system, and the need for structural reforms. Finally, they analyze the Trump-Xi meeting in Busan, the US's efforts to compete with China, and the potential for a pragmatic off-ramp in US-China relations.