Harvard Economist Reveals Shocking SECRET About China in 2025

90% of the people in today's world still live in developing countries and they have a very different view different perspective on China than the more hawkish military kind of view that we have heard in the west and so forth because Chinese Technologies are eminently practical cheaper with same amount of quality or higher quality and they are intended to solve developing countries issues this is caou Jin a Harvard educated Economist currently working at the London School of economics she is one of the world's most respected voices and insiders into the Chinese economy and often sheds light

on how the West fundamentally misunderstands China and the reality of its future as 2024 draws to a close and the US prepares to begin a new chapter with Donald Trump as president one looming question remains how would the new US Administration handle China the US and China have the most important geopolitical relationship in the world and the US China rivalry will continue to be a major storyline in 201 25 Professor jyn challenges the mainstream narrative that China's economy is collapsing but instead reveals Why Us sanctions have actually been a blessing to China and ironically a

key driver of economic growth in today's video we'll debunk some of the most common myths about China and explore how despite political tensions the US is adapting many of China's economic strategies to improve its own economy if you want to cut through the noise and understand the truth about China this is the video for you let's begin to understand the truth we must establish one point first the West fundamentally misunderstands China because it views the country through a stereotypical Western lens thanks to her Chinese background in Western education kuu Jin can see through both sides

of the narrative and exposes how quickly these Western interpretations unravel when examined from a different perspective let's start with the popular claim that China's economy is collapsing in reality China is undergoing an economic transition this is the Cornerstone of how the Chinese government functioned their plans emphasize long-term meticulous strategy while these plans may not be immediately profitable they position China for long-term future success the best example of this is China's investment in building the world's most extensive high-speed rail network the initial cost is extravagant but the long-term benefits for 1.4 billion people are life-changing for

years Western media has criticized China's decision to invest in high-speed rails claiming that it could never become a profitable Venture but fast forward to 2024 and the South China Morning Post reports that China Railway is bringing in record profits and lowering their debt many Western economists interpret China's recent economic slowdown as a sign of the middle inome trap this Theory suggests that as wages rise countries lose their Competitive Edge and exporting manufactured goods and struggle to compete with developed economies in high value added sectors however China has defied this narrative not only has it retained

its industrial base while wages have increased but it also dominates high value added Industries like EVs and renewable energy China stands as the newest global economic Powerhouse emerging swiftly alongside established Giants that have held their position for decades China has learned from the economic transitions of the G7 and the West which gives them a unique advantage in 2015 China's government launched a new initiative called made in China 2025 to help prepare the shift away from low value manufacturing to high-tech Industries this Strategic investment is already paying off in fields like robotics Ai and Green Technology

China is now the industry leader in nearly every future defining sector while there may be short-term challenges the long-term outlook for China's economy is far brighter than that of many Western countries Additionally the so-called disaster that China is facing refers to GDP growth projections of 5% a decline from the near 10% average growth seen over the past few decades if 5% is a sign of collapse for China how should we look at the United States who forecasted for only 2.6% growth how about the UK France and Canada all barely over 1% growth and what about

the economic heartbeat of Europe Germany who is on the brink of a full recession Professor jyn then tackles the myth of overcapacity which claims that China unfairly subsidizes their Industries and floods the world with their goods this talking point has been echoed by countless us politicians over the last 12 months but it's a completely false narrative and here's why all countries subsidize their Industries and Export more than they consume Apple operates at a huge overcapacity it produces far more iPhones than the US market could possibly handle and then exports those iPhones around the world this

is basic economics we learn about in grade school this narrative largely driven by the West emerges because they struggle to compete with China's vast industrial base the fossil fuel industry in the United States is a prime example of America's own over capacity the US heavily subsidizes oil gas and coal despite already having a significant domestic production capacity these subsidies which include tax breaks and government incentives prop up production even though the industry produces more than the domestic Market consumes meanwhile the future clearly lies in green energy instead of investing in fossil fuel profits China focus

it subsidies on emerging green Energy Technologies as cugin outlines in her analysis this is achieved through a unique collaboration between the Chinese government and the private sector where China invests in the best entrepreneurs in the country they help the entrepreneurs why do they help the private entrepreneurs because they are the best they want to help the best not the worst or the most politically connected because by helping the good entrepreneurs you're creating an entire ecosystem of success this is a unique model and something most people don't know about China's government but it's why China has

risen so fast to dominate so many new areas of tech China's so-called overcapacity in Green Technology production is actually a global asset take my home state of Florida as an example the most recent hurricane displaced tens of thousands of people and caused billions of dollars in damage the world has set ambitious climate change goals that must be met to avoid these worsening impacts of climate change cou Jin goes on to State the reality of the situation by 2040 we will need 45 million electric vehicles in use to stay on track for the green transition and

trillions of dollars in financing especially in developing countries so I really don't see an over capacity issue both in products and in finance China's capacity in the space is one of the world's greatest assets the cost of solar power for example has dropped by around 89% from 2009 to 2019 alone almost entirely due to China's significant investments in both production and Innovation the next Point cug Jen addresses is the West unrealistic notion of decoupling from China and trust me when I revealed the data behind this claim you'll immediately understand why the West understanding of China

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tocom Cyrus and use code Cyrus a checkout for 15% off but now let's reveal the truth on why it's simply impossible for the West to separate itself from China there's a reason why China is the top trading partner for over 120 countries and it's why even CNBC reports that China is a critical Global supplier and decoupling is likely impossible just take a look around your home you can bet that almost every product involves China at some point along its supply chain this Reliance on China stems from three key factors its abundance of rare earth materials

its Cutting Edge Green Technology and its massive industrial base when it comes to producing modern Goods Western countries would be fortunate to compete with China in even one of these areas let alone all three China's dominance in these fields ures that most products will have a majority of their components originating from China with perhaps only final assembly taking place in a country aligned with the West this is why kuu Jin argues that there is no deglobalization happening as it's completely impossible to do so it's reorganization while countries May seek to diversify their supply chains they

cannot fully disengage from China instead they will end up relying on it through more indirect channels where products are assembled elsewhere but sourced from Chinese components and materials America claims that it will drisk from China by importing products from countries like India Mexico and Vietnam but here's the catch many of the goods these countries are exporting are sourced from China what this essentially means is that America is importing Goods like solar panels from India that were actually manufactured in China just with an extra step this reorganization of Supply chains only creates longer routes and higher

costs which are ultimately passed on to the American Consumer China and the US are the two largest economies in the world and the biggest sources of supply and demand there is simply no way the global trading system can function effectively without their direct involvement despite the political push to decouple from China American companies understand the business realities take for example a recent article from The New York Times titled breaking up with China is hard to do business Executives across the US are sounding the alarm over these policies Ford CEO Jim Farley recently visited China and

upon his return wrote a report emphasizing just how much more advanced Chinese electric vehicles are compared to Western Brands he warned that Legacy Western automakers face an existential threat in China this threat being the fact that China is simply producing better quality cars at lower prices he realizes that Ford literally has zero chance of competing in this space in fact Ford has predicted a loss of around $5 billion on its electrical vehicle operations in 2024 rather than jeopardize the company to align with Washington's political stance Ford understands that working with China is the solution to

their challenges earlier this year they announced plans for a battery Factory in Michigan Licensing technology from China catl the world's biggest and most successful EV battery manufacturer Ford has also reported increased earnings in China after entering into Partnerships with local businesses Business Leaders outside of EV see this too Legacy companies such as Apple recognize the intrical part China plays in the production of their products the cold hard truth is that moving forward in 2025 Apple will be buying more materials sourcing more components and Manufacturing more products in China than ever before Jeff fieldhack a research

director for Counterpoint research Arch revealed why apple is doubling down its efforts in China an expert on their supply Lane he states that it would take apple a decade to get out of China even if it wanted to it's not just the building of devices it's a huge ecosystem of components in fact Apple has increased its use of parts from mainland China suppliers while using fewer suppliers from Taiwan the United States Japan and South Korea in addition to the raw material side they double down in technology and software operations in China by expanding a research

center in Shanghai and opening a new lab in Shenzhen there are thousands of American companies who have built their supply chains factories an entire future inside of China the US and China have been partners for over 50 years there is literally no chance they could ever realistically decouple we must find a way to coexist and it starts with having better elected officials in Washington be objective about America's future but the problem here is the US government has openly stated its desire to transform China into a more liberal country both economically and politically but what this

really means is forcing China's government to align with US foreign policy objectives we hear this often from US government officials that promote the idea that America First is the best economic policy for every country in the world but honestly the idea makes no sense because every country in the world should be concerned about their own strategic interests but just look at how the US controls the EU and forces every European country to adhere to American best interests we see this playing out right now in real time with asml a Dutch company who manufactures the only

machine in the world that can produce Advanced microchips right now the Dutch are caught between an intense geopolitical battle between the US and China and the result is the company is losing billions of dollars of Revenue in opportunity cost as the US government refuses to allow asml to sell their Advanced machines to China when countries don't comply with us demands the US typically responds with sanctions aiming to worsen economic conditions and force regime change the US government also frequently funds separatists and opposition groups within other countries though these tactics have been attempted with China over

the past decade China's government has been able to see the dangers and recognize the US government's history of destabilizing other nations China will not allow an outside country particularly the United States who has a proven track record of meddling in international Affairs to dictate its future this vigilance and resistance to external pressure underscores China's determination to maintain its sovereignty and strategic autonomy making it resilient against us tactics that may have worked on smaller developing nations in the global South as us and gmany wains many Global South countries from Latin America to Africa are pursuing alternatives

to the us-led liberalism just last month Burkina Faso announced the nationalization of its gold mines expelling British firms while neighboring revoked French mining licenses for its uranium time will tell how the US will respond to these developments but we are seeing more and more countries pursue alternative paths and take notes from China's developmental Playbook Ironically in recent years the US itself has also been adopting strategies reminiscent of China's approach there has been bipartisan support for investing in American manufacturing an attempt to make up for the decades long abandonment of this sector many economists argue correctly

that the US is now shifting towards model that resembles China's rather than the other way around as we look ahead to 2025 us China relationship remains one of the most critical issues that will shape the global economy cug Jin's insights serve as a powerful reminder that the West understanding of China is deeply flawed often driven by political motives rather than economic realities China's strategic planning investments in high value Industries and dominance in key sectors like Green Technology and Manufacturing make it a vital player in the global supply chain despite political rhetoric decoupling is not just

unrealistic it's impossible the interconnectedness of the US and Chinese economies showed that economic cooperation is not a matter of choice but necessity as the US attempts to rebuild its manufacturing base and navigate its own industrial policy it is in many ways adapting a model similar to China's the new Trump Administration will face the challenge of rethinking its approach to China Trump has vow to increase tariffs on Chinese Imports to 60% but how will this affect the average American Consumer the path forward requires not just competition but coexistence and the new Administration in Washington will face

a mighty challenge that is better us China relations collaboration rather than confrontation is the only viable solution for both countries to thrive in the coming years the future of global stability depends on the ability to find common ground and work towards shared economic goals everyone thank you for spending time with me here today on YouTube and now it's time to let me know what you think about the US and China's economic relationship in 2025 drop me comment down below and I look forward to seeing you all in our next video soon