Adam Tooze on the Big Misconceptions of the Chinese Economy | Odd Lots

One of the big buzzwords over the last year or so has been "overcapacity." There's a constant line of argument that China is unfairly flooding the world with unprofitable goods and creating huge, unsustainable imbalances. Western countries, particularly the US (but also Europe), have responded by raising tariffs and engaging in domestic industrial policy in order to compete. But is the strategy sound? Are the basic premises of the problem correct? On this episode of the podcast, we speak with Columbia Professor Adam Tooze, the author of several books, as well as the popular Chartbook newsletter. He argues that the overcapacity framing is misguided, and that the US may be making a mistake putting its chips down on an industrial revival. He talks us through some of the actual weaknesses of the Chinese model, as well as its global political reverberations.

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Key insights from the pod:
Intro -- 0:00
Is ‘overcapacity’ a useful frame to understand the Chinese economy? — 04:40
Has there been a paradigm shift in trade politics to a new worker-centric frame? — 09:27
How China’s internal development leads to persistent export growth — 12:43
How people in China feel about their economic growth model — 17:16
How the China-German relationship changed since Covid — 22:08
Understanding the rise of the German far right in the context of global trade — 26:28
Supply side solutions for China and Germany — 30:53
Accusations of China cheating in trade — 33:24
What is the role of a public intellectual in critiquing the Biden administration? — 36:58

#China #Economy #News

Bloomberg's Joe Weisenthal and Tracy Alloway analyze the weird patterns, the complex issues and the newest market crazes. Join the conversation every Monday and Thursday for interviews with the most interesting minds in finance, economics and markets.

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