by Nicholas Mitsakos | China, Economy, Trade, Transformative businesses, Writing and Podcasts
A global economic and political chess game is on between the United States and China. There are many moves, defensive and offensive strategies, short- and long-term gains, but, unlike chess, mutual victory is possible. But only if the U.S. and China understand each piece, all the potential moves, what can be sacrificed, and what victory really looks like. But this does not appear to be happening. Instead of working for mutual benefit, regardless of fundamental cultural and political differences, we are now drawing bright lines demarking battle zones. The result will be economic and technical inefficiency and degradation in the quality of life, safety, and prosperity for everyone.
by Nicholas Mitsakos | Book Chapter, China, Economy, Investments, Writing and Podcasts
Chinese economic policies and motivations since 2008 not only emphasize growth and sustainability of state-owned enterprises but, a critical but much less well-appreciated dimension is the Chinese government’s emphasis on stability. No economic policy in China will ignore this, and the high value placed on stability pervades all the current trade talks with the United States.
by Nicholas Mitsakos | Book Chapter, China, Economy, Technology, Writing and Podcasts
While it may seem tempting to target attractive market sectors and provide government-backed capital and direction, this typically does not end well. The efficient allocation of capital, demanding an appropriate return for given risks, is something private markets do extremely well. A handful of bureaucrats cannot match the collective wisdom of the capital markets, no matter how attractive the target.
by Nicholas Mitsakos | Artificial Intelligence, Book Chapter, China, Technology, Writing and Podcasts
WeChat has become the ubiquitous, full-service platform for communication and commerce in China. Essentially, the company has taken the mobile Internet and made it their own. The WeChat internet has a lot to admire — and emulate. While the United States sees big tech as a colossus that needs to be knocked down, the Chinese government saw tech companies as economic engines to be harnessed. They were right.
