Economic Update: China’s Economic Record and Strategy

Economic Update: China’s Economic Record and Strategy

This program
is a follow-up on an earlier program we did. That program was devoted to the Soviet Union,
that first example in the modern period of history of an attempt to build a socialist
society. I built that program and the one today around
the following assumption; that in many conversations about capitalism and socialism as alternative
systems mention is made, particularly by the older generations, of the Soviet Union and
today about the People’s Republic of China. These are looked at as examples (good, bad
or mixed) of what socialism is. They certainly are examples of what some of
the early efforts at building socialism look like and because they’re spoken about so often,
referred to and thought about, it seemed a reasonable time for me to devote some attention
to analyzing them. We did that with the Soviet Union in the earlier
program and today we’re going to do it with the People’s Republic of China. Before I jump into it let me be really clear
about how we are going to do it. This is not an exercise in “we’re good. They’re bad. ” Either way that comes from the Cold War
which was supposed to have ended in 1989-90 but clearly hasn’t, or at least the Cold War
is alive and kicking in the minds of some of our fellow citizens. This is too bad because it prevents the kind
of balanced approach of looking at the pros and the cons that a mature and intelligent
conversation ought to be about. Capitalism has strengths and weaknesses. Socialism is an alternative and it has strengths
and weaknesses. We’d all be better off if we were able to
talk about all of that without resorting to childish invocations of how “we’re good
and they’re bad”. You really ought to get over that at a certain
point in your life or else something’s wrong. We’re not going to go there so let’s go. Let me begin by talking about what economists
often talk about when comparing different kinds of societies and
comparing different countries. You might remember that Adam Smith’s great
work “The Wealth of Nations” published back in 1776 was about explaining why some
way nations are wealthy and some nations are not and to account for that, to understand
it. Part of that was a very generous impulse Mr.
Smith understood that poor countries would like to not be poor and wanted to learn what
the rich countries might be able to teach them about how to get to that situation. China was one of the poor countries at the
time Adam Smith wrote and it got poorer after that. By the 20th century (the last hundred years
or so) the Chinese people were not only the most numerous people of any country on earth
(they remain today the most populous country on this planet by far) but also very poor. The capitalist part of the world had grown
much richer in the intervening couple of centuries so they were even further behind as well as
being absolutely poor. So, they were focused, like most of the people
in the world are, on overcoming poverty. So that’s been their major goal and it’s a
reasonable place to start to assess how well they’ve done. If these numbers trouble you then please understand
it’s because you did not know about them before, not because there’s anything wrong with the
numbers. Over the last 20 years the People’s Republic
of China has increased its output of goods and services faster than any other country
on this planet. In the case of the comparison between the
People’s Republic of China on the one hand and the United States of America on the other
they’re not even close. Let me explain with some numbers. The rate of growth of output of goods and
services (the productivity of the economy, if you like) [for China] in 2005 was 11%. In 2017 it was 15%. In 2010 it was 12% and it has slowed down
since then. Over the last year it was a mere 6.4%. If you wanted to average it out it was probably
in the neighborhood of 10-11% over the last 10, 15, 20 years. By comparison, let me give you the numbers
for the United States of America. Its average growth rate in the 1950s and 60s
was 4%. In the 70s and 80s it fell to 3% and in the
last 10 years it has averaged 2%. In the latest year it was 3.2%; half of what
it was in China, but for most of the last 20 years the rate of growth of China has been
2 to 3 to 4 times that of the United States. That, in a simple way, tells us something. Number one it explains why we’re reading and
hearing so much about China; because they have become the second most important economy
in the world because they have achieved these extraordinary rates of economic growth. Number two it will help you understand something
else about the people of China: they are not about to be pushed around, neither by Mr.
Trump nor anybody else because they have the economic strength
to resist. Number three, if you’re the government of
the People’s Republic of China (and that is a government in which the Communist Party
of China is dominant) you are hardly about to change the way you organize your economy
given how well it has been doing. Governments change either willingly or under
pressure when they’re doing badly for their people. It makes people bitter, angry, critical, and
liable to push for change. This is something Americans no doubt understands
since it’s a situation we face here in American capitalism, or in Europe with
their capitalism that’s not doing really well for an enormous number of people. As a consequence, criticisms are rising. You see a rediscovery of socialism, for example,
here in the United States, you see the yellow vest movement demanding fundamental changes
in France and you see all kinds of other movements we don’t have the time, today, to go into. I like to deal with them occasionally, at
least, in other programs. This is already enough to explain to you why
the People’s Republic of China is the economic phenomena of our time. Let me turn next to the second most typical
statistic to look at if you’re comparing countries and you’re trying to understand what’s going
on with the development or not, of wealth and poverty. This number is called the “real wage”. Here’s what it means: how much can people
afford to buy with the average wages they get. To understand that we look at two numbers. First, how much money is given to people per
hour for the work they do and on the other hand what are the prices of the things they
buy with the wages they get. In other words, if your wage goes up by 10
percent but so do all the prices you face, you’re not one bit better off. You got 10 percent more money but it doesn’t
buy you anything but the same quantity of things it bought you before. When we adjust the wages workers get for the
prices they have to pay, we get what’s called the “average real wage”. What you can afford with the money you get. Let’s compare the last 20 years in the United
States that is this century so far in the United States with that in China. In the United States real wages (the average
wage of the American worker) has stagnated. It has gone nowhere. That’s true not only for the 20 years we’re
talking about of this century, it’s true for the last 25 years of the 20th century. Here’s a statistic for you to think about
as an American if you’re watching this program from the United States or listening to it
on the radio here. In 1973 the wage of the United States, the
average wage of an American, was able to buy (here we go now) MORE things than it was in
2018. The real wage in the United States is less
today than it was then. It’s not less by a lot but it means that over
the last 40 to 45 years Americans who have worked harder than ever, who have been more
productive than they ever were across that time, have not shared in their greater productivity. Their real income, their real wages have not
gone up. The real hourly wage in the United States
is lower today than it was in 1973 and that is something to think about. But now comes the Chinese story. Over the same period of time, the last 20-25
years, real wages in the People’s Republic of China have quadrupled. Let me tell you that again. The basket of goods and services that an average
worker gets in China for an average hour of his or her work is four times greater today
than it was 25 years ago. Yes, Chinese wages remain below the average
in the United States because they were and they still are a poor country when you divide
their total economy by the enormous number of people that live in that country. But if you want to understand why the people
of China support their government here’s a clue: their real wages went up four times
over the last 25 years in a society led by a government in which the Communist Party
is the dominant political force. Let me pause to let all of this sink in. This is not about whether you like these numbers
or don’t this is not about whether you’re critical of many aspects of Chinese society
or you’re not. I myself find things in China I admire and
things in China I would like to avoid. I try to look at the strengths and weaknesses. But when it comes to the economics of their
socialist system and I compare its performance over decades to this moment, there is no contest
about which system has served its people better in terms of economic growth of output. The economy as a whole and the real wages
of the average worker in that society. Is China an example of equality? No. It has a great deal of inequality. There the United States and China have something
in common; high inequality that’s actually getting worse. We will continue after the mid program break
to talk about what’s going on in China so that we understand what the internal
mechanisms are that explain this performance. Before breaking let me remind you, please,
to make use of our websites: and Please subscribe to our YouTube channel. Just go to And finally I want to thank our Patreon community
for the support it continues to provide. We are grateful and appreciative. We’ll be right back. Welcome back friends to the second half of
today’s economic update. We’ve been talking about the People’s Republic
of China. In the first half today we spoke particularly
about its performance as an economy: its rate of growth in production of goods and services
on the one hand and the rate of growth of the average real wage of a Chinese working
person on the other. Having shown the remarkable success of their
economic growth program in both those ways I want to turn now to how they did that. How do they organize their economy and particularly
in what ways differently from that of the United States or Western Europe that might
help us account for their extraordinary performance? First, and perhaps most important for many
of you that are watching and listening, is to understand that the Chinese economy for
quite some time now has had a mixture of privately-owned enterprises and state-owned enterprises. wYou might think of it as a mixed economy
between private and state. It is also true over the last 2025 years that
the role of the private sector has been enlarged, relative to the role of the state sector. However, that has to be made a little more
complicated by noting that the Chinese, in managing this balance between the state and
the private, give the dominance to the state. They say that the state-owned enterprises
will always be the leading sectors, the main industrial groups within the Chinese economy. There’s plenty of room for private enterprises
but the leading part of the economy will be the state. Why are the Chinese doing that? First and foremost, they are doing it because
it’s their way of learning from the experience of the Soviet Union. When the Soviet Union’s kind of socialism
(in which the state was overwhelmingly dominant and the private sector
was really quite restricted), when the Soviet Union collapsed in on itself in 1989 it went
through an extremely quick transition from an overwhelmingly state industrial sector
to an overwhelmingly private one. This was pushed by the folks in Russia who
wanted these changes, it was pushed by foreign advisers led by Jeffrey Sachs now of Columbia
University. It was called a kind of “cold shower treatment”
or sometimes “shock therapy” as a way of fixing what was understood to be wrong. The Chinese analysis is that the suffering
of the Russian people in the 30 years since then (the failures of the Russian economy
in the 30 years since then) had largely to do with the excessive speed and the excessive
extent of what happened in the Soviet Union. They have been determined not to repeat that
mistake. In other words, their communist party’s plan
is to make the transition slow and limited. Yes, foreign enterprises can come in if they’re
private capitalist enterprises, and many have. Yes, Chinese people can set up private enterprises
as many have. But the leading sectors of the economy will
remain state-owned enterprises running the program of economic development that the state
organizes under the leadership of the Chinese Communist Party. It’s important to understand that the Chinese
kind of socialism is itself a learning process in which what happened to the Soviet system
is playing a major role, in this case of what not to do in the way that happened in the
Soviet Union. But it is not the only factor that’s involved. To continue the comparison with the Soviet
Union, because the Soviet Union was the first socialist country and completely isolated
after the 1920s, surrounded by a world that hated what they were doing, they couldn’t
and didn’t find a way to build their economy by exporting. They could not produce for the
rest of the world, make a lot of money that way and use it to develop their own economy. They had to do it pretty much on their own. The Chinese have taken a different path there
as well. Early on the Chinese decided (at the end of
the last century the beginning of this one) to hitch their economic wagon to the world
market, to become the producer of goods and services for sale around the world. In order to do that they had to build industries
that produced what the rest of the world did either at a higher quality or at a lower price
or both. Basically, they’ve done that which is why
Chinese automobiles join Chinese appliances, Chinese clothing, Chinese you-fill-in-the-blank
is everywhere. Most of what you will see in an average Walmart
is made in China and there’s a reason why Walmart stocks up on Chinese goods, and they’re
not the only company of course. So, they hitched their wagon to the world
market and they’ve done very, very well because of it. The Russians couldn’t do that and the Chinese
could and they did. Here’s another thing: private capitalists
didn’t go into Russia hardly at all but they have been rushing, stumbling all over themselves
to get into China. The Chinese understand that and they offered
Western capitalist enterprises the following deal. We need your technology, the Chinese said. We need your money, your capital to be invested. So here’s the deal. We offer you, we will provide you with well
disciplined, efficient, hard-working workers at a very low wage (the one that we have here
in our poor country) and we will build the roads and provide the supports for you to
be able to make a lot of money producing here in China more cheaply than you could ever
produce in America, or Western Europe, or Japan etc. All we ask in exchange is that you share your
advanced technology because that’s why we’re doing this with you. You will have access to our workers and you
will have access to our customers to sell your product, but we want your technology
and your capital. Nobody put a gun to any capitalist enterprises’
head. They made the decision to accept the offer
of the Chinese because it was profitable them for them to do so. If it meant that they laid off workers in
their home countries, these capitalist enterprises, they could care less. They did that. They abandon whole industries. They abandon whole communities. That’s how capitalism has always worked only
this time, with this destruction of working people in the West there was a boon to the
workers of China, which is why I gave you the numbers about the average real wage. So, the Chinese used the world market. The deal they struck with private capitalists
and the lessons they learned from the Soviet Union to organize what they call a special
Chinese kind of socialism that allows for private enterprise (a considerable amount),
allows for market dealings (a considerable amount), but controls from the top through
the state-owned enterprises the leading or dominant sectors of the Chinese economy. The last part of the show for today is to
give a little historical context China is an old civilization and a quite homogeneous
civilization. The Han people are the dominant ethnic group
and other ethnicities are small and scattered. The Chinese are a proud people with a long
history of a pretty well-developed civilization which at various times over the last couple
of thousand years was much more developed than civilizations in the West were. So for them it was doubly embarrassing, humiliating
is the word they used, to fall under the control of foreign colonialists in the 17th, 18th,
19th century from Britain, from France, from Germany, from the United States. It culminated in a horrible moment of rebellion
called the Boxer Rebellion at the end of the 19th century when a futile effort by the Chinese
authorities to push back against the Western imperialists was defeated. China was never made into a colony. They’re very proud of that. But they had to give away Hong Kong and parts
of their country to the foreigner who controlled them, who settled their merchants and other
companies in these special territories where they didn’t find
themselves subject to Chinese Authority or Chinese law. The Chinese, as a people, made a commitment
to find their own way, to break, led by Sun Yat-sen at the beginning of the 20th century. And when that wasn’t sufficient and when they
were added the humiliation of the invasion of their country by the Japanese in the 1930s
a revolt of a much deeper sort took place in China. They were successful. At first it was an alliance between the nationalists,
who wanted to build up a capitalist China. and the Communists, who wanted to build up
a socialist China. But they worked together to push the Japanese
out. By 1945 they had done so, together with the
fight of the United States and its allies against Japan. As soon as World War II was over the alliance
between the capitalist / nationalist Chinese under their leader Chiang Kai-shek ended up
in a civil war with the Communists, their former allies, led by Mao Zedong. A civil war broke out from 1945 to 1949 ending
with the decisive and complete victory of the Communist Red Army. The Chiang Kai-shek people left the mainland
of China and went to Taiwan where their descendants still live and still imagine that they, on
the little island, are China whereas the vast mass of people on the mainland are something
else. No one hardly is left in the world who shares
this delusion. From 1949 to now, 70 years, is historically
not a long time. But from a decimated, poor, colonialized country
China is now the number two economy in the world. It is an incredible achievement. Not to understand that, not to understand
what this means in the minds in the feelings and in the pocketbooks of the Chinese people,
not to understand that it has involved moving four to five hundred million people off of
the poverty-stricken countryside into the urban industrial jobs along the coast of China,
these are misunderstandings that make no sense. You are not helped in understanding, let alone
fixing the problems of the world, by living in the delusion that the things I’ve tried
to get across today are not the case, don’t have to be taken into account and somehow
don’t matter. Unfortunately, in the mainstream media of
the United States, and in other parts of the West, most of this is simply not reported
on, not covered, evaded. That doesn’t do anyone a service unless it’s
the people who run the kinds of society China isn’t, who are afraid of the model and the
example China offers. For my part it is our effort, here at economic
update, to provide the kind of information on the basis of which rational decisions can
be made about making the world a better place. I hope you have found these in-depth analyses
of the Soviet Union and China a useful part of the ongoing debate about capitalism and
its alternatives, the number one of which is varieties of socialism. Thank you for your attention and I look forward
to speaking with you again next week.


  1. A really good, informative and illuminating lecture! Simple and straightforward explanations in a simple and straightforward language! Congratulations!

  2. Meanwhile all I hear from mainstream media is China is evil, totalitarian, lacks rule of law, no freedom, they make it look like Chinese ppl are dying or something. Lol

  3. Although what the Chinese have accomplished I certainly spectacular, the comparison of these two economies is unfair simply because our is am economy fully and has been
    for a long time.

  4. I'll add this – even within the state sector (as in state owned enterprises – SOE), there's a mixture of state and private, called hybridization, where managers from the private sector work in SOEs to make them more efficient and competitive however the state (central gov, provincial gov or city gov) retain majority control and ultimately call the shots. This way they can balance out various social interests – providing employment, and services, while being profitable and self-sustaining. Not all SOEs are hybridized, some are and the successful ones provide case study for others.

  5. Average workers wages have stagnated, but the corporate elite’s salaries have multiplied exponentially, because they shipped our jobs abroad in order to get cheap labor then sell those products back to US consumers. American consumers must get wise and demand a better deal from corporate elites.

  6. First and foremost, admittedly so China did not have create as American purposefully took from its’ poor Blacks and White job- Industries and place it en Chine; of course this process was not over night, but en any regards America acting racist Ly took from its’ self. China on the other hand really is just an assembler of terrible goods (Thirty year’s proved nothing by way of quality) where payments rolled in.

    America’s corporations and government are one en the same- Profits for the few. A pure example of this is the purposefully orchestrated plan to stagnate the wages of workers- White and Blue Collar all the while increasing the price of terrible goods assembled en Chine which should decreased en price, but not.

    It therefore a correct statement, ‘Your alleged analysis is greatly flawed or a huge attempt to shield your American and world audiences of the most specific reason or decision utilised en making decisions en America- HATRED, RACISM, MURDER, and A huge VIOLATION of HUMAN RIGHTS! En fact, a more accurate analysis would be to compare uncompromisingly the similarities of America and Chine.

  7. Wolff is lying because it contradicts his B.S.

    China didn't "build industry" -most, at least initially, was brought in by the Capitalist companies who hired their people. And in most cases there was no deal to "exchange" technology – it happened organically as Capitalist enterprises were set up with foreign help and their people learned the business.

    And Wolff is hiding what made all this happen, and produced the huge success and the difference with Russia – because it goes against his agenda – which is that China took a clear step to THROW OUT Wolff's beloved Socialism from the economy, and to bring in Capitalism, keeping only the political totalitarian system and 1/3 of industry in state's hands, and freeing up the other 2/3.

    So China is a great example of Socialism failure and Capitalism success, and Wolff is tip toeing around this, and not saying it, because it blows up in his face.

  8. Dear Dr Wolff.
    Thank you so much for this.
    I have found myself completely obsessed with trying to find out more about the Chinese political and economic system ever since the current incumbent of the Whitehouse started his demonisation of the country. Apart from personal enrichment and retaining power by any means, regardless of the long term outcomes for the US and its people, it is hard to see what is being achieved. I applaud your clear-sighted analysis and pray that some moderation and maturity will enter the discourse in order to avoid what appears to be an inevitable train wreck.

  9. Chinese workers are brainwashed drones working 12-16 hours a day, 6-7 days a week. Of course slavery is a very efficient economic system. The same was true for USSR. We need to replace capitalism with a more equal and democratic system, not with a dictatorship barely distinguishable from slavery, run by a few party leaders.

  10. Its nice to see someone speak about the facts and not let the fearmongering voiced by so many affect the true situation we are facing in our economic worlt today and in the near future.

  11. Mainstream media….. fucking sucks…..

    Never heard ANY of this…. not a peep. But I keep hearing they steal our intellectual property….. NON STOP!

    Thank you Mr Wolff.

  12. The Soviet Union was the main liberator of China from Japanese occupation. One of the largest the largest and most successful (from the Red Army perspective) series of battles few people (outside of China and Mongolia) know about. It's why there are Red Army monuments all over China, not just in the north where the fighting occurred.

  13. Great analysis. This explains why Joss Whedon's short-lived futuristic space-cowboy TV series FIREFLY showed the multi-world society to be an amalgam of different cultures with an underlying base of Chinese influence.

  14. Very good analysis.
    Don't forget that Chinese laborers often work in desperately poor conditions and their workplace is not democratized by any measure.

  15. Now Dr. Wolff, yes I agree that China is growing fast but I think you forgot to mention that they are a developing economy. The US is a mature advanced industrial economy that tends to grow at a much slower rate. I think the max for a developing economy is about 10% and a mature economy is about 6%. The US is definitely underperforming. I think they need another big war because the business of the US tends to be violence. Wages are a different story.

  16. The reason China is doing so well is the Lord Almighty God is blessing the work of their hands United States is coming down because of their sin the Lord Almighty brings a country up and bring them down and that's what's happening to America's filthy sin that is the real truth

  17. Many aspects of China in modelling and moving the economy conformed to Confucius. China is a Cultural State which bind their billions of people with Confucius values, regardless of their socialist or imperial states.

  18. It would be cool to see some numbers on the screen. The pace is thought, I assume, to cover a vast audience – both from a difference in education level and political opinion. To be more didatic and evidently fact-based rather than ideology-based, graphs and such are a significant help

  19. Poor countries don't let America in there billionaires to steal your natural resources and get themselves some leaders and know what they're doing that's because God has given every country natural resources enough so no one will be poor

  20. The world was originally diversified. The United States is fighting worldwide and harvesting the wealth of other countries, leading to endless chaos and forcing the promotion of American will.

  21. Didn’t China taka from the rich and gave it to the poor Chinese
    It was obvious everything wqs made in USA now everything is made in China’ did America become incapacitated’ GREED from Chinese and America n few at the cost of amderican workers

  22. Where is my dear Reuters… the champion producer of half truth Western toilet website online? Truth will eventually emerge and prevail!

  23. I guess that the absence of democracy, repression of free speeach, absence of unions, deplorable working conditions and lack of social welfare had and is having a major role in that economic 'miracle'.

  24. Soo…we're going back to Cold War rethorics: for some China is evil incarnate, for others a successful model to emulate or even "copy"

  25. this is the type of analytical and supported by stats reporting that is badly needed by the MSM. US will only be weaker by the day if it continue to hide in the hole and demonise any economy that is catching up without a clear strategic goal for the country (such as the china 2025 goal). China isn't JP in the 90s where the US still using the exact set of strategies (e.g currency manipulation/Toshiba/plaza accord agreement). punitive measures such as strangling Huawei and other Chinese corporations isn't going to hurt china too much either. china true strength is it's 1.4B population with 400m middle class. US only has 350-400m total population. making things worse, US is pushing talents away whilst china is absorbing talents that fits into its 2025 goal.

    The problem with US capitalism system is corporation heavily influence the administration, against the public interest. e.g are the insulin that is sold in the US is 10x more expensive than Canada. war industries funded both republicans and democrats, causing the country to go into war for long 18 years.

    on the other hand, the Chinese are let by a group of elites who seem to have the interest of the people in mind. it is a more dangerous bet as compared to the democratic system the American advocate but it has proven more efficient and beneficial to the Chinese in the past 50 years.

  26. I really appreciate your work, I am avid follows of your sesions. My request to you to please use better sound facilities for recording for us to enjoy more and with clarity.

  27. Here is a smart man sharing much-needed wisdom/truth with the world. Something ppl these days are been told is NOT important anymore

  28. Chinese system is a capitalistic system governed by a socialist government who finds the capitalist system they have very profitable to have which get what they want in front of the rest of the world. It is a far cry from what Mao Tsetung envisaged for China or what Karl Marx had in mind for socialism.

  29. The capitalists had to abandon the home country workers because all the stupid unions were making so much money and making it impossible to operaTE A BUSINESS IN ANY SENSIBLE MANNER.

  30. Yes mr. Professor they were more productive because they had no restriction ln pollution laws. and that is why their air is polluted their land is polluted and their water is polluted. now looking at the aftermath I would wonder if a little more production was worth it.

  31. On the one hand, the rabid right screams about how horrible communism would be in the US and on the other hand they want to raise China as a huge rival economic threat.

  32. Thank you, thank you, thank you!! So illuminating!! Brings tears to my eyes to think that I’ve lived this long without this clearly articulated information. What a boon to have stumbled upon this channel.

  33. This is one of the best videos, Dr. Wolf concluded everything right on the dollar. Excellent analysis Besides, the Chinese gov't smart enough to have the private operate under the Chinese rules and jail the crooks which are growing faster than the economy. Many runs to the US's arms embrace by the US politicians, the Chinese crooks purchase $60 million condos in NY while millions of American are starving. If you are rich no matter what your skin color the US always welcome. Money has only one color–GREED.

  34. China simply used a business model that is at least 1000 years old: Prosperity and trade via Silk Road, a unified country with no democracy and trust between the government and the people.

  35. China and Korea are the only 2 major industry countries who build industry system basically only based on people,s intelligence and hardworking without any colony interest. while all the other developed countries more or less transfer the pain to the colony people a lot of them even been genocide. Then human rights based on the sacrifice of the colony land people ….

  36. A little correction, the communist army won the civil war was not called "RED ARMY" already then, instead it was and is called "Liberation Army". However of course it was the same army as "Red Army" which is the name of that army before Japanese vast invasion. Liberation Army being used in civil war and still now is because Taiwan is not liberated yet. In both constitutions of PRC and ROC, it is written that there is only one China and it contains mainland and Taiwan. The difference is that the PRC claims CCP is official government of China and the ROC claims their government is official. UN recognizes China as PRC, and Taiwan is a province of China. After couple of years when Taiwan is liberated, the army should change its name I guess, e.g. to Chinese Army. National unification and nation recognition is the priority no.1 for Chinese people. Militarily, it is important to liberate Taiwan because US and Japan imperialism is locking us at shore from Pacific ocean.

  37. This is the best analysis I ever heard about China and the world, you have the in depth understanding of economics and today's China.

  38. II must say I trust Prof, Wollf more than I trust Trump. In this world we live in, some are teachers and others are Demagogs. We should of course question even the things we are told by our teachers , and especially what the Demagogs are feeding us. Prof. Wolff is doing a great job, I think. He is a good speaker, and he is passionate about what he is doing, which makes his programs both entertaining and informative. A Swede

  39. Too much fake news in the West but sometimes you get a fair perspective. There is a feeling here that the party represents the people. I enjoy life in China as they learn and adapt quickly to facts. Excuses are not appreciated. It has certainly widened my horizons and for that, I am very grateful.

  40. Nations economic wealth are dangerous unequal and plaques with ideological difference,
    and in the long run, it will deplete
    Resauce and damage our specie confined home world's environment, and lead our specie to a stunt growth in terms of evolution,

    as a specie, we must put our interest of humanity as a whole first, to do this we must desolve nations sovereignty and and defence ,and create a new one governing body on behalf of our humanity as specie,

    Let us live as a specie not nations.

  41. Broadly correct but is far too kind to both our multinationals and the Communist Party of China (CCP). I worry it "polishes the turd" of China's singular "achievement" by leaving unexamined some very critical and other merely very important aspects of the stitch-up between multinational corporations and Communist Party of China (CCP):

    1. On Labour – The term "cheap, well disciplined labour" is a terrible euphemism for what is, in fact, coerced labour with no rights. Chinese employees have some rights "on the books" so to speak but they can use it as toilet paper because they are not able to enforce any of it. For the most part, Chinese labour is still very satisfied because their wages have gone rocketing up and they didn't have any rights in the first place when they were much poorer. However, one can't simply overlook the fact that Chinese labourers can't address any issues they have in the workplace and many work under slave labour conditions with a wink and a nod from Western multinationals to the CCP. Western labour could never compete unless it accepts a race to the bottom epitomized by what we now see and for which economists have coined the lovely term "labour market flexibility" and which we know as the "gig economy" of poor, zero hour contracts, no benefits, no certainty self-employment that now characterizes western labour markets in a growing range of occupations and keeps wages down or flat in other sectors.

    2. On Environmental Protection – No explanation of the nature of the Chinese miracle should fail to mention of the complete lack of environmental regulation by the CCP and the role that has played in its meteoric rise. Again, they have laws on the books but they enforce them only when convenient to do so. Environmental compliance is a major cost of business in the West (at least in the industrial and petro-chemical sectors) and surprise, surprise we now see the Republicans tearing up the EPA and relaxing environmental constraints in the quest to be "competitive". A key part of the "deal" between our multinationals and the CCP was that the "costs of business" not just the cost of labour would be drastically reduced and this included the right to despoil the environment at will. Only now that the CCP is in less need of our corporations than vice versa (and the fact it does nobody any good to be rich if you can't breathe air, drink water or eat safe food) are positive changes taking place, ones which will likely cede the "green industries of the future" to China as they need the technology much more than we do at this time and so are investing a lot more sponsored and subsidized by the state.

    3. On Access to the Domestic Chinese Market – Western multinationals soon found out that China never intended to and never did grant "free" access to its domestic market. Western multinationals were and are routinely excluded from it altogether without justification or legal recourse and, to the extent it is permitted / granted, it is often made purposefully costly to the point of being unprofitable altogether, requires a local "partner" and is always subject to submission and compliance with CCP political objectives (for example, you won't long be doing business in China if you don't conduct your business and self-censor your employees abroad in line with China's worldview and foreign policy objectives which clash with liberal western values and basic human rights – just ask google). Result, what content you can see in China using Google search platforms already reflects what the CCP wants you to see (Great firewall in full effect), it will surely not be long before the Great firewall is imposed abroad. If you believe otherwise you are being naive, American Airlines, Delta Air Lines and United Airlines began to remove references to Taiwan, of which Taipei is the capital city, as a separate country from their websites to ensure smooth access to mainland China, why would Google be any different when and if Beijing demands its censorship extended to users abroad? Writ even larger, corporations become de facto lobbyists in Washington for China demanding acceptance, for example of China's claims in the South China Sea, in order to ease access to the irresistible Chinese market.

    4. Western Multinational got Played – Due to a combination of arrogance ("Chinese companies could never supplant us or do what we do better") and an intense focus on the short-term (bonuses are based on annual or even quarterly basis not decades), Multinationals fell into a trap where state sponsored (i.e., subsidized) private Chinese companies used the technology that was happily handed over to them to reverse engineer everything and successfully out-compete those same western multinationals. Abroad they can out-compete Western multinationals that do not receive the same level of government subsidies and undercut them on price and with time, western technology and the lovely facilities and infrastructure our multinationals payed for Chinese products such as Huawei are equal to or better than the best of the west. Western trade practices mean Chinese companies pre-Trump tariffs had literally unfettered access to our markets while western multinationals, as per point 3, face enormous hurdles to sell into and access the Chinese market. On top of that, western multinationals can't simply "repatriate" production to the West as some Americans like to think because of the huge sunk costs in China and their incredibly smooth and fluid, just-in-time production and logistics. Anything like that would be a decades long enterprise mirroring the length of the Chinese miracle roughly 1975-2019. Further to the extent it does happen, multinationals will prize doing the same thing again but using another cheap base (for example, India, Phillipines, Vietnam etc.) and trying to avoid making the same mistakes the6y did in China (good luck with that since the problem of the short-term profitability horizon that managers care about remains).

    I will not address our western governments' complicity in all of this let's just say it lies with both parties Republicans and Dems sold everyone out.

  42. I mean just use your basic common sense (if Americans still have it), think through the whole thing logically and objectively, it is simple, China has not been to war for the last 40 years; USA hasn't stopped going into war for the last 40 years. Let alone the amount of people that have been killed directly/in-directly by the USA invasions, just the amount of $$ burnt throughout those wars are INSANE.

  43. The Taiwanese see themselves as independent. It has had 70 years of being functionally separate. And it was not until relatively recently that the mainland finally caught up economically (absolute not per capita) and overwhelmed Taiwan it with its size. I've seen how that dynamic has changed over my lifetime. Countries used to more readily acknowledge and engage with Taiwan as a political trading partner, not merely an economic one. China told other countries they could only formally acknowledge the mainland if they wanted to trade with China. And so they did.

  44. That is a very simplified version of modern China actually, I urge reader don't take the model of China at face value. It's a very unique case. But, what democracy can learn from China is, accountability. Elimination of capitalist special interest. If US can do these two, it's half successful already. Then get rid of glorification of the colonial and imperial past, America then can truly be great.

  45. I must admit my aggression and express apologies, as the current trade war lead to a demonizing ideology from China to America and the other way around. The two people have different backgrounds, principles, and to say my own is better is unjustified. To many Chinese, America appears exclusively as a blood thirsty enterprise trying to mess with China, when it was also its people, its culture, its identity. I think, or hope that both countries have learned something from the trade war. Trade war actually forces China out of its comfort zone, to address social problems, and I would rather meet an proud and powerful America than one that withers away. And most certainly the death of both people.

    Long live China, and God bless United States of America.

  46. Richard, I don't think you'll be able to get the ideas across to the general American public about those things, yeah yeah China is growing fast and it's unprecedented and it's the world's fastest and largest and etc etc, they've heard of them too many times, they can repeat those to you without missing a single word but what those really mean are never understood, nevermind numbers, their brians shut off as soon as you start bringing up statistics.

    It worked better the other time when you started using IRL terms, for example, you won't have to worry about debts you took to send your kids to college, because you paid it in full, by yourself, after graduation your kids won't have to worry too much about finding jobs because instead of shutting down factories and businesses, new jobs are created every year. Yesterday you could only buy a budget phone on discount, today you're using your brand new iPhone and you'll be buying the new one coming out next year too, because your wages are doubling every 7-8 years. And this doesn't just apply to the already-rich, everyone from across the board is seeing observable increase of living standards, every year, for everyone, even the poorest.
    Not even someone running for president dares to promise those in his/her campaign, it sounds so unreal yet those are happening in real life, and has been, stably, for the past 30 years.
    Because those are so obvious nowadays even in the west, denying it becomes unfeasible, what the institute can do now is to just distract you from it, give you something else too hook onto, yeah those Chinese are giving their babies the best milk powder (which ironically were produced in the US, Australia and New Zealand) that's true, but don't you forget they have no freedom, no human rights! Look at you, or your best friend Jake, although he's lost his job, trapped in debts, now food-insecure and is on the blink of becoming homeless, well look on the bright side he still lives in a democracy, has freedom of speech and most importantly, a right to vote! the Chinese don't have any of that! They are all jealous of you and what you enjoy! They can't even watch youtube! now watch this next video (about disasters happing elsewhere), because you have the right to, here's the next one, and the next, oh btw don't skip the ads, that's important.

  47. Another fool, the chinese people are a race of comformity as well as the japanese more so than the rest of the world. its easy to create social constructs under that circumstance were the USSR could not the chinese have a good chance of getting. is not about giving the chinese more wealth lol the government wants absolute control of the people. people that think communism or socialism could work everywhere are out of their minds

  48. China is not communist at all, China is socialism + state capitalism + free market. Free market is great ,but far from perfect, market can’t resolve every problems by itself. During the crisis, the State-owned companies can provide the society very fundamental products with affordable price. If U.S want to avoid recession, it have to go to the road of Democratic Socialism. Take China as good friends instead of an enemy.

  49. It's fare assessment. China actually still has a big room to improve. If they just raise salary to the same number of Americans, Chinese GDP can easily be double. China needs to improve management system. But private companies hire 70% of work forces.

  50. Evil British used opium to get Chinese silver because the whole west was addicted to Chinese silk,tea, china. But Chinese didn't need anything from West, especially the industrial product, especially the weapon (they really should buy in my opinion). So the moral west British, France, United States etc. started smuggling drugs to China. It was illegal to sell opium in China, so Chinese government started cracking down the illegal trading and distroied opium, just like every country does today. Just because Chinese government realized the damages the drugs have done to people and tried to stop illegal smuggling, somehow giving West the excuse to invade China with modernized weapons that Chinese didn't want. So course Chinese lost war,and have to pay the costs of the war to western countries who invaded China. So Chinese started poor and poorer life in the past one and half centry. What on earth the west has any moral value condemn China?! China made mistake that didn't modernize its military in general because they don't like war. I hope history history won't reap. That is why China is still bring good things to the world, yet also help other countries to develop like Africa, just like silk road Chinese only sell products to the world but they never want to occupy other parts of the world when they could and were able. Today, they learned lessons from the history is when you do and bring good things to the world, they have to be able to defend itself by strong military. So the western world won't be easily harvest wealth by force. Look at history, it is not difficult to understand who is the really bad guy.

  51. The Russians DID NOT want capitalism, it was pushed from the top, in fact there were riots in russia because of capitalism.

  52. Capitalist companies are only responsible towards their investors, not towards their workers. Add to that they wanted to break the unions. Hence they didn’t blink an eye to close US plants and move to China.

  53. Mr Richard wolf.. china is a poor country you said.. if ''so'' how come American airports looks like Chinese bus station.. and Chinese airports looks like American sci-fi movies.. Chinese high speed train makes the Japanese one looks like a toy set.. the reality is Mr wolf.. china is not poor.. china is middle income and will be very rich in a few years.. may be a lot sooner than you think when the fiat dollar finally collapses..

  54. Socialism4Freedom / DanielHall4Freedom / aka TeslaDan4Freedom

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  55. What is going on with Hong Kong is efforts for forcing to destabilize this country because of their strong economic growth is a direct threat to corporate America. We are witnessing people causing chaos in Hong Kong to force economic catastrophe and this is why the number went to half. This isn't the Chinese doing this and I know you who and how this is happening. I took Global Business for my masters and China has provided entrepreneurship in their country for gaining wealth among their economy by giving growth to their people. They gave each person that wanted to grow their own business money while giving a percentage back to their government. This has done very well for them. Small businesses in America are being dominated by corporations that are difficult to compete with and we give false pretenses for finding ways of debt servants to owing more to the government through more taxation to small business that big business like Amazon get out of paying.

  56. I listened to the Thrive Movement for informing of the divisive conflict with China and Russia to the US. China and Russia are forcing the US for a movement of derailing of the elites.

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