Quote · Excess Returns
Finding Quality Growth in Emerging Markets with Ian Smith
Where this was said
China's overcapacity, competition and global manufacturing edge
At 39:50 · chapter starts 37:30
Ian Smith describes China's 'involution' dynamic, its manufacturing prowess (battery production lines over a kilometer long), and how companies expanding abroad earn much higher margins. [1] — Ian Smith "China's culture of 'involution' — hyper-competitive markets with abundant trapped capital and government-backed rivals — crushes domestic r…" 39:40
China's culture of 'involution' — hyper-competitive markets with abundant trapped capital and government-backed rivals — crushes domestic returns. But the same environment produces companies so battle-hardened they can compete and win anywhere in the world.
