PKU Professor and former World Bank Chief Economist discusses the decline of the G8 and outlines strategies for China’s continued growth and rejuvenation.
Professor Lin outlines the Beijing‘s Political Ambition. As an Industrial Strategist, I look at the Physical Law.
On G8 Decline: Let's be objective. The G8 wasn't 'defeated'; it abdicated. By prioritizing Financial Assets over Industrial Output, the West voluntarily outsourced the 'heavy lifting' of civilization. Lin's data simply reflects the opportunity cost of that financialization.
The 'Tesla Reality': Lin uses Tesla as a success story. I see it as a Constraint. Innovation (US) is now physically tethered to Capacity (China). It proves that Ideas are mobile, but Supply Chains are sticky. This isn't about 'friendship'; it's about 'gravity'.
The 4.5% Target: This is not a 'destiny' as the speech suggests; it is a Stress Test. To hit 50% of US per capita GDP, the R.I.C.E. system must run at near-perfect efficiency despite demographic headwinds.
The Takeaway: You don't have to agree with the ideology to respect the Law & Math. The pivot from G8 to G20 is simply the accounting catching up with the real physics.
Professor Lin frames the shift from G8 to G20 as 'Rejuvenation'. As an Industrial Strategist, I see it as 'Global Arbitrage.'
The Mispricing: For decades, the G8 enjoyed a massive valuation premium. They financialized their economies while outsourcing the physical work. That created a structural imbalance.
The Trade: China didn't just 'rise'; it executed the ultimate 'Factor Cost Arbitrage.' It combined Western IP with the R.I.C.E. System's low-friction infrastructure to capture the physical market share.
The Re-balancing: Lin's data showing the G8 share dropping to 34.7% is simply the market correcting that mispricing. Capital (and power) is flowing from 'Financial Centers' to 'Production Centers.'
This isn't about ideology. It's about Liquidity. The G20 represents a more liquid, asset-backed global balance sheet. We are just watching the spread close.
Professor Lin outlines the Beijing‘s Political Ambition. As an Industrial Strategist, I look at the Physical Law.
On G8 Decline: Let's be objective. The G8 wasn't 'defeated'; it abdicated. By prioritizing Financial Assets over Industrial Output, the West voluntarily outsourced the 'heavy lifting' of civilization. Lin's data simply reflects the opportunity cost of that financialization.
The 'Tesla Reality': Lin uses Tesla as a success story. I see it as a Constraint. Innovation (US) is now physically tethered to Capacity (China). It proves that Ideas are mobile, but Supply Chains are sticky. This isn't about 'friendship'; it's about 'gravity'.
The 4.5% Target: This is not a 'destiny' as the speech suggests; it is a Stress Test. To hit 50% of US per capita GDP, the R.I.C.E. system must run at near-perfect efficiency despite demographic headwinds.
The Takeaway: You don't have to agree with the ideology to respect the Law & Math. The pivot from G8 to G20 is simply the accounting catching up with the real physics.
Professor Lin frames the shift from G8 to G20 as 'Rejuvenation'. As an Industrial Strategist, I see it as 'Global Arbitrage.'
The Mispricing: For decades, the G8 enjoyed a massive valuation premium. They financialized their economies while outsourcing the physical work. That created a structural imbalance.
The Trade: China didn't just 'rise'; it executed the ultimate 'Factor Cost Arbitrage.' It combined Western IP with the R.I.C.E. System's low-friction infrastructure to capture the physical market share.
The Re-balancing: Lin's data showing the G8 share dropping to 34.7% is simply the market correcting that mispricing. Capital (and power) is flowing from 'Financial Centers' to 'Production Centers.'
This isn't about ideology. It's about Liquidity. The G20 represents a more liquid, asset-backed global balance sheet. We are just watching the spread close.