"I talk to historians and economists in Beijing, and many are studying Japan intensely. They understand that Japan experienced a period of no domestic growth due to the Plaza Accord, which limited exports. After the late 1980s, Japan stagnated for 30 years. However, they built an economy through Japanese companies and capital outside Japan, potentially rivaling the domestic economy. Japan replicated its manufacturing and supply chain abroad. Many argue that Chinese businesses should follow this model: instead of competing against each other and selling goods cheaply, they should collaborate with locals, set up factories, and establish supply chains overseas." - Jianggan Li
"In Singapore, a relatively small economy, the government struggles to rescue the labor force impacted by the shift of manufacturing. The U.S. faces this challenge on a much larger scale. While economists might suggest that short-term pain will eventually lead to people finding their place, the reality is many struggle to adjust. It likely takes a generation to adapt properly. In the meantime, people often turn to populist politicians who promise quick solutions. This trend is evident in recent European elections, where dissatisfaction with the status quo drives voters to the political fringes, regardless of whether it’s the right in France or the left in the UK. Ultimately, people are looking for change from any direction that promises to address their concerns." - Jianggan Li
"The government strictly enforced a nine-year basic education. For basic manufacturing like textiles and ceramics, this might not matter much, but for more sophisticated industries, such as the EV and Apple supply chains, it's much easier in China to hire workers with a basic secondary education who can read instructions and comprehend tasks better than those without this education. When applied at scale, this makes a significant difference. However, there's an issue with college graduates. East Asian cultures highly value education, and everyone strives to excel. This results in an oversupply of college-educated individuals compared to available jobs. In a free-market economy, this would lead to lower salaries or force some graduates to accept jobs that don't match their aspirations or education levels." - Jianggan Li
"Jianggan Li, Founder & CEO of Momentum Works, and Jeremy Au talked about three main themes:" - Jeremy Au
In this episode, Jeremy Au speaks on China: Indonesia and Trump tariffs, manufacturing dominance, involution 内卷, and education labor mismatch with Jianggan Li.
Keywords: China, Indonesia and Trump Tariffs, Manufacturing Dominance, Involution Neijuan, Education Labor Mismatch, Jianggan Li, China, Indonesia, VC, Thought Leadership
