Huge thanks to our mates at Acorns for making this video possible! ❤️ Sign-up for Acorns! 👉 acorns.com/ee?s2=SV3​ (upon registration, Acorns will deposit $5 in your account to help you get started with investing!)

@Justin-cw7zf

3 жыл бұрын

How is this comment from 26 min ago?

@hudsondunn8385

3 жыл бұрын

@@Justin-cw7zf He is a wizard!

@EconomicsExplained

3 жыл бұрын

@@Justin-cw7zf Two words: time travel.

@Justin-cw7zf

3 жыл бұрын

@@EconomicsExplained If you can time travel then what will happen to the economy in the future

@noel7777noel

3 жыл бұрын

So when is Tesla going to start to pay back its investors? That factory was expensive to build.

Last time i was this early Shenzhen was still a fishing hamlet.

@andro7862

3 жыл бұрын

Same population as the viewcount.

@HarshJain-it2bg

3 жыл бұрын

In reality, china is a crappy place. . chinese ccp is a 50 cent party. .

@leonardodavinci7524

3 жыл бұрын

@@HarshJain-it2bg bhai tuh chutiya ha

@theanonymspysandwich

3 жыл бұрын

@@HarshJain-it2bg Wait till ya see their wonderful styrofoam bridges/skyscrapers. They're to die for!

@whoisjoe5610

3 жыл бұрын

@@HarshJain-it2bg So just like India?

I appreciate this being done by an Australian, which means world maps include NZ haha

@w0mblemania

3 жыл бұрын

We have to take care of our little brother.

@jh5401

3 жыл бұрын

@@w0mblemania who made pavlova

@Alaryk111

3 жыл бұрын

@Nigel1048 It's somewhere near Denmark I think.

@Ozzianman

3 жыл бұрын

@@Alaryk111 No, no... That is the Faroe Islands. Is it the island near the USA?

@w0mblemania

3 жыл бұрын

@@jh5401 According to wiki, Pavlova was created in Australia. Hooray for us!!!

"It does almost seem like the companies being run like the government and the nation is being run like a company" and that my dear EE is probably the best short describtion of China I've ever heard.

@freakmoister

3 жыл бұрын

I thought that was the most nonsensical thing uttered.

@rippleyaliens8275

3 жыл бұрын

It like, Clicked in my brain housing group. Makes sense now.

@Commievn

3 жыл бұрын

@Black Dad But because of that model. It runs much more efficiently, and the wealth of the nation is distributed more equally compared to other developing countries. Prices of products are also cheaper Cost of living is also cheaper as well. Remember, china is still *developing* Once it becomes a developed nation by 2045, i am sure the quality of life will be very good!

@sayit2198

3 жыл бұрын

@@Commievn I wonder if Tibet will gain it's freedom though. :(

@sayit2198

3 жыл бұрын

Xi jing ping is called the Chairman so.............

I think one of the things that was overlooked in the video is that Shenzhen (like other cities in the Pearl River Delta) is also an industrial production center, 80% of all electronic devices are produced there, so the economic proposal is still very different from the sillicon valley (that focuses on innovation while its products are not made there).

@samuelyoung2671

3 жыл бұрын

Thats the point... they focus on manufacturing things design in the west bc its a sure bet. The culture and the government is not one of risk and innovation.

@Nonamearisto

2 жыл бұрын

80% of all of China's devices, not the entire world's.

@johnwong5317

2 жыл бұрын

So Shenzhen to surpass US has to start off as a bigger pirates. Seriously, there are so many articles about copy-cat products in Shenzhen that produce things faster than the real products. I still remember the interview with someone said "If a new product come out, you can expect a cheaper copy version to product in Shenzhen and there will be a copy version of that copy with cheaper price. Things will get cheaper and cheaper as people will copy each others."

@Traumglanz

2 жыл бұрын

There has been a lot of innovations around production and rapid prototyping too. If you go to Shenzhen you can build anything and everything there. The whole thing about Silicon Valley having all the transistor, pcb, etc companies already in place … that is all in Shenzhen now. There is no place in earth better for rapid prototyping and a lot of silicon valley companies have for exact that reason an office in Shenzhen. Well, production itself happens there too.

@mylet2658

2 жыл бұрын

Manufacturing you keep the price of production low as possible if you have someone else do the expensive r and d you can keep the products attractive for export where as in the it’s cheaper to design than manufacture, you don’t need massive dies and extruders to do that.

I'm a 17-year-old from Iran your videos are such huge inspirations fantastic job.

@sahiljumani7256

3 жыл бұрын

Iran has internet???

@amiralimo1192

3 жыл бұрын

@@sahiljumani7256 yeah obviously

@EconomicsExplained

3 жыл бұрын

Thank you for watching mate! Favorite comment of the day!

@amiralimo1192

3 жыл бұрын

@@marioferreira7605 They have blocked it I am using VPN to access it.

@ecksdee1637

3 жыл бұрын

Im a 16 year old from Iraq. Much love

When you're so early China still haven't opened its market to foreign companies yet

@leopietsch1855

3 жыл бұрын

and it never will

@badluck5647

3 жыл бұрын

Unless you hand over your intellectual property, then you can keep waiting

@trunkage

3 жыл бұрын

@@leopietsch1855 The average western country has 78 to 82 % of its market away from government control. China has about 72%. Sure it's bigger... but not by that much

@Slithermotion

3 жыл бұрын

​@@trunkage Would be interesting to see where you got your numbers from. I mean from the 25 biggest companies in china 20 of them are state owned and the rest is..."private" what ever that means in china.

@usersays8599

3 жыл бұрын

don't you love it when your coworkers brag about how early they got up as a flex

Awesome video. I’ve lived in SF my whole life and this holds true. The only thing I would add is that through my travels to Shenzhen I would argue that their version of Silicon Valley is much more focused on hardware innovation given the prevalence of manufacturing the region as a whole and less on software. Software is where most of the “gold” is right now. So I’d argue that’s another point why more money stays in CA rather than Shenzhen.

@doujinflip

2 жыл бұрын

That was basically the same mistake IBM made when Microsoft came out with DOS. Ultimately hardware is just a harder sell because of the amount of capital and effort input just to produce, whereas software is so adaptable the work can and is being done from literally anywhere, and it's not impossibly difficult to port over a program to a different hardware platform if desired.

@mighty-roman

2 жыл бұрын

​@@doujinflip I also agree with you there. But maybe the government doesn't want that. From what I saw, the government is bent over backward over stability(or stable growth) instead of growth. And software isn't as stable as hardware. This video shows how regulations are stopping investment and stuff. But if you look at it from another viewpoint, you would notice why China is so harsh on regulations. The US is a great example of what happens when you give too much freedom to rich people. During the 2008 incident, they didn't even ask once whether the government would bail them out. They basically forced the government to bail them out. I'm not entirely sure whether China's current model is decent or sustainable, but we'll probably see it in the future.

@spartancrown

2 жыл бұрын

@@mighty-roman In the simplest of terms, when China opened up it grew and became where it is. Now that they’re reverting back to clamping down and Xi is essentially trying to be the next Mao it’ll no longer enjoy what it had. Especially with Xi burning bridges with just about everyone from Australia to Japan and India. Had he been smart and kept Deng Xiaopings attitude things would be a good bit different.

@dreadfulbodyguard7288

2 жыл бұрын

@@spartancrown He has also changed laws so that he can rule indefinitely. Not a good thing for China.

@tamulemon

2 жыл бұрын

@@spartancrown how vastly simplified this is, completely ignoring the hostility China is facing everywhere. The best China to the Western world is an open China full of cheap labor, no technology, no prosperity, divided, and just taking orders.

So basically too many investors in Silicon Valley stifling creativity for money. Too few investors in China stifling creativity because no money.

@romannasuti25

3 жыл бұрын

I don't think Silicon Valley's issue is stifled creativity so much as over-eager investment allowing the shitty ideas to get way too far. I'm a software developer and will likely work there some day, and the majority of the problems I can see stem from dubious ideas getting funded. This is actually bad for entrepreneurs too, as this mad rush for capital usually means giving up stake in the company to the point that the founder might hold less than 1% or even none of the company's valuation by the time the IPO happens. This means founders with a fantastic business idea often aren't the primary beneficiary of their company's success, which just feels wrong. There are exceptions to the rule of course, Amazon being one of them (Jeff still held onto 20% of Amazon last I heard before his divorce).

@kaiserxblue

3 жыл бұрын

Ñ

@Bob-lr2xp

3 жыл бұрын

Assuming Communist regulations and quasi-state actors encourage creativity that doesn't benefit the state.

@matta6088

3 жыл бұрын

^ don't fall for the imposter bot ^ there was a fake channel with scam link

@Bob-lr2xp

3 жыл бұрын

@@matta6088 Not a bot. Just not a fan of the CCP's backstabbing nature. Ask Elon Musk when they stole his Tesla infrastructure last week.

KZread actually notified me for once, great!

@ZZ-vl5nd

3 жыл бұрын

It notified me 17 mins late!

@BC-vf4xb

3 жыл бұрын

It seems you took my notification!

@jefthe1

3 жыл бұрын

KZread notified me a month later 😂😂😂

*me pretending like I know what you’re saying * Ah yes, valuation🤔

@ninjamusic9554

3 жыл бұрын

You lool cute and handsome Adrian

@adrianarnold4552

3 жыл бұрын

@@ninjamusic9554 I appreciate that Ninja Music, I really do.

@thejagtimes

2 жыл бұрын

@@adrianarnold4552 fresh cut man

I’m old enough to remember when the Santa Clara Valley aka Silicon Valley was orchards! ‘Silicon Valley’ was traditionally the area from San Jose to Sunnyvale, not including Palo Alto to SF; the original PA and Menlo Park companies like HP were affiliated with Stanford. But now there’s high tech companies all the way from San Jose to SF! MP was the epicenter of Venture Capital.

@gohanssj48

3 жыл бұрын

It's weird see the history passing through our eyes, don't? I'm not as old as you, but I'm still old.enough to see industries in a central business district here in São Paulo, Brazil, where I live.

@nhmooytis7058

3 жыл бұрын

@@gohanssj48 yes the SC Valley was once called The Valley of Heart’s Delight.

@Brenden667

2 жыл бұрын

most of the houses still have fruit trees, but the orchards are all now townhomes

@tanvi7532

Жыл бұрын

Isn't apple just bunch of orchards ?

I’ve learned so much about economics just from this channel. I could never sit in a beginner economics class in college but now after watching EE I feel confident in enrolling into a beginning economics class. You have added fuel to my small spark of interest that I had for economics. Thank you!

@johnwright7916

3 жыл бұрын

I'd also recommend Unlearning Economics, another very good economics channel that brings some unothodox views to the area

@thetaomega7816

3 жыл бұрын

This is barely economics, this is just random economic facts

@seemysight

3 жыл бұрын

@@johnwright7916 econômics unlearned series on the suburbs are amazing

@shyguy1845

3 жыл бұрын

@@thetaomega7816 Yep, it's entertainment at best or maybe to spark an interest in the subject, but this is barely educational.

@absolutefocus2749

3 жыл бұрын

@@shyguy1845 the fact that the video said that companies like Huawei, Tencent, Alibaba etc are meaningless, when Huawei invented 5G, not to mention that they were slowly but surely creeping up on the number 1 spot of phone companies before the Trump ban, and yes absolutely no innovation coming from China. /s

How are those "weekly uploads" going😉 In all seriousness, I can notice a huge uptick in production quality and things like animations in the latest videos, keep them up!

@EconomicsExplained

3 жыл бұрын

😂As the adage goes... if you wanna make God laugh, tell him your plans!

@jdzam6183

3 жыл бұрын

@@EconomicsExplained i need you brother ! I miss my sunday vids so much

@ivanm3342

3 жыл бұрын

You also getting abandonment issues from EE?😭 He promised hed upload, why hasnt he uploaded??

I can't believe how I'm still watching episode after episode of economy programmes, despite having no understanding of economics. They're just that entertaining! Great job!

It's not that there aren't big tech companies that come out of shenzhen, but that most of them aren't really used outside china. Examples include alibaba, tencent, bytedance(creator of tiktok), didi, et cetera.

@sturmeko

3 жыл бұрын

Are you sure about that? (*unpacking my 1000th order from Aliexpress, while playing League of legends and watching Tiktok on 2nd screen)

@maxpowers8209

3 жыл бұрын

@@sturmeko LoL is American....

@feather563

3 жыл бұрын

@@maxpowers8209 you are both correct. Riot games developed LoL since 2006 and released in 2009 but its parent company has been Tencent since 2011, or basically all of its marketing boom

@phoenixwright7802

3 жыл бұрын

what are you talking about? all those are outside of china

@teza5876

3 жыл бұрын

I regulary buy stuff from alibaba and aliexpress. From Australia.

Hey Mr. Economics Explained. I thought the KZread algorithm nuked you out of existence. Nice to have you back

@HarshJain-it2bg

3 жыл бұрын

In reality, china is a crappy place. . chinese ccp is a 50 cent party. .

@suey1690

3 жыл бұрын

@@HarshJain-it2bg though I have no empathy for the members of the ccp, your comment isn't really relevant to Mordekai's question.

@crispincuttino8157

3 жыл бұрын

@@mohit_panjwani Sheesh, simmer down boss

@HarshJain-it2bg

3 жыл бұрын

@@suey1690 It is..... Wait for a few more days.

@allisterjones

3 жыл бұрын

nah he just hasn't uploaded in forever

Congrats on 1M subscribers Michael!! 🎊🎉

@EconomicsExplained

3 жыл бұрын

Thank you mate!!

China takes an entirely different perspective. Traditional economics is heavily skewed towards the western capitalism view. Shenzhen doesn’t exist to be ‘China’s Silicon Valley’. Beijing doesn’t care about that. They’re looking at creating strategic economic centers around the country focused on the various kinds of industry needed to make Communist China a 1000+ year system. They take the loooooooooong view. Something western economics doesn’t calculate due to inflation / npv. Shenzhen isn’t ‘sinocon valley’. It’s just the heart of the technology manufacturing industry sector of China and enjoys policies and government focus to make sure it plays its part in the overal grand plan. They also try hard not to concentrate too much economic power in a single city or province. It’s very unlikely that you’ll get the defense/hardware/software combination in China like Silicon Valley has for fear of a challenge to Beijing’s power. And for software industry, look at Hangzhou. Petrochemicals and automotive, Guangzhou. Etc etc. Think of these cities as semi-planned capitalist centers of economic activity. Lesson is: don’t analyze China with a western filter. The numbers may be correct (or not, that’s often murky too. E.g. if you add up all the reported GDP growth of individual provinces it’s higher than national GDP numbers), but the motivations are likely only part of the picture at best.

@yookalaylee2289

2 жыл бұрын

Well you can ignore economics, but you can’t ignore the consequences of ignoring economics.

@jebes909090

2 жыл бұрын

The ccp isnt going to last 1000 years. Its lucky if it will past 20 more. Thats always been china problem.for the past 5000 years. Every time someone new gets in power thier grand vision tends to destroy the last grand vision so they stall

@ragglefraggle9111

Жыл бұрын

China spending trillions on unproductive infrastructure and creating ghost cities is not at all "taking loooooooooong view"

Most Chinese tech growth firms are listed in us or hk which is not included in the csi 300 I believe

@halseyzheng3364

3 жыл бұрын

yes youre right

@niranjanbhat9432

3 жыл бұрын

So Chinese economy is underrated! & USA economy is overrated!

@sumanadasawijayapala5372

2 жыл бұрын

What about the SSE Star Market?

@johnwig285

2 жыл бұрын

@@niranjanbhat9432 Based on US debt, yea sure US market is overrated. But China's economy is still in bad shape whether those tech giants list in US and China. The real underrated one is Antarctica.

Could you take a look at the economy of Nigeria. Its a really weird case and I think it would be interesting to study

@EconomicsExplained

3 жыл бұрын

Definitely! Thank you for the suggestion mate!

@craigh2205

3 жыл бұрын

@MantisSZNYA2 it would be good if leeds was turned into the uks high tech capital i have always liked that idea

@highpath4776

3 жыл бұрын

@@craigh2205 Leeds economy mostly based on Leeds Uni and what was the remants of Halifax and Leeds Permanent Building Societies ( ie fin services), read the yorkshire post, most, but not all, manufacturing dead (kirkstall axles, hunslet locomotives, fowler engines, waddingtons printers, most of the clothing manufacturers , Biggest employer outside of fin serv was probably the ASDA HQ) , the consumer boom and housing have been driving the area .

@ajmountains3880

3 жыл бұрын

@MantisSZNYA2 pretty sure hes making fun of himself more than those cities assuming he's from London.

@alanjames2117

3 жыл бұрын

@@ajmountains3880 nah this is the internet youre not allowed to make jokes here anymore

Pls invest in my Tran Capital VC fund

@10_irsyadmahdimubarok74

3 жыл бұрын

Hi

@EconomicsExplained

3 жыл бұрын

Done. Put me down for a trillion doge.

@darthcuny

3 жыл бұрын

@@EconomicsExplained anybody know the dogecoin supply level?

@nanoguy-ob2tb

3 жыл бұрын

no

@sam08g16

3 жыл бұрын

I've been investing in Trans for years now and highly recommend

As having recently purchased a drone to expand my photography business, I am happy to see that there's ample demand for aerial photography in the KZread explainer video niche :D As always, great content!

Very enlightening video. Learned something useful today. Thanks!

I’m lucky this video showed up in my recommenced. Pesky KZread notifications didn’t say anything again. Thanks for the great informative content, though! The effort and research that goes into your vids is evident. Always an interesting watch!

I learn so much every time I tune in, great video!

@EconomicsExplained

3 жыл бұрын

Thanks Denkeis! Glad you learned something new :-)

Great video. Thank you for making this.

Excellent video! Very informative! Thank you!

These videos are just so consistently AWESOME.

@EconomicsExplained

3 жыл бұрын

Thank you so much mate! 😎

@Wujin88

3 жыл бұрын

Pretty ethnocentric tbh

@epithet052

3 жыл бұрын

When you watch so many KZread videos you start commenting like youtubers make video titles.

Favourite YT channel that actually gives educational content which is fun at the same time✌🏻keep going🙌🏻

@EconomicsExplained

3 жыл бұрын

Thanks Laura. :-)

@kaelanirevyruun1676

3 жыл бұрын

Now expand and get into learning about people being idiots while also getting to learn about medical science and check out ChubbyEmu xD (Oh and Roanoke Gaming as well)

Great video and congrats on the million!

Brilliant video!! 👏🏼👏🏼👏🏼

From Italy - Bravo 👏🏼 Love how your channel has grown! Would love a video on the stagnant yet dynamic economy of Italy. Still hanging on to it’s G7 status, Italy is the only OECD nation to have a black market economy equivalent to over 23% of GDP similar to many developing economies. It is a true bridge between worlds and a paradox of sorts.

@nunchucks2583

3 жыл бұрын

Are you referring to the control the various mafia organisations have over the economy? I had no idea they were that powerful, that's almost on Mexico's level!

@michelangelomissoni945

3 жыл бұрын

@@nunchucks2583 yes nobody does! Nations like France and Germany don’t want to acknowledge it, so pretend not real. Italian government doesn’t want to acknowledge it. Italians pretend its not happening. In reality our biggest crime syndicate, Ndrangheta, makes around $100 billion a year (Cosa Nostra only $20 billion). They would be one of the biggest companies of Europe :0

@thejagtimes

2 жыл бұрын

Any links for me to read more?

@michelangelomissoni945

2 жыл бұрын

@@thejagtimes Start with the tip of the iceberg that is the immense hidden Italian wealth ;) en.m.wikipedia.org/wiki/%27Ndrangheta

Another great production, pragmatic and on subject.

Been with this channel since the beginning (I think the Australia video, but might be mistaken). So glad to see it's grown so much. Keep killing the game EE!

Great video. Thank you for sharing

One important difference that you ignored based on your interpretation of "innovation" was the difference in expertise. Most if not all of Silicon Valley are software companies that sell apps or web services. Shenzhen primary is the hardware capital of the world and has multitudes of innovation in its hardware acceleration labs. You can watch the Vox video on this. It's quite good. I would like to see you make a video actually talking about the hardware innovations created in Shenzhen.

@mastertoad2

3 жыл бұрын

I agree. Also, he compares the impact of US and Chinese tech companies from a Western consumer’s perspective. Of course baidu is not influential to you if you don’t live in China. The same could be said of a Chinese consumer not being impacted by google.

@whoisjoe5610

3 жыл бұрын

@@mastertoad2 Sure, and I agree that the innovations out of Shenzheng part was a bit biased, but even then Silicon Valley has a much more successful track record of innovation than Shenzheng, mainly in software but I would also say hardware. Then again, Silicon Valley has been around for longer. Also, venture capitalist nature has changed over the past few decades.

@jm1835

3 жыл бұрын

As soon as he said Shenzhen has no innovation I just stopped the video, how can you even say something so blatantly wrong. Does he think the hundreds of start up tech companies are just sitting around doing nothing all day? Poor research, just making up assumptions based on feelings

@CaptainFluffy6644

3 жыл бұрын

This comment thread is where people come to earn their social credits.

@eduwino151

3 жыл бұрын

@@jm1835 chinas idea of innovation is just making a chinese version of western stuff

You are the best economy channel on KZread, continue with your work😉

@d.jmamba7237

3 жыл бұрын

lol if you believe that then you surely don't know anything about economics

Just amazing content. Very well presented

Congrats on reaching 1M subscribers!

Its 2:11 am in India right now. There hasn't been a better time to watch an Economics Explained video.

@EconomicsExplained

3 жыл бұрын

Haha, thank you mate

@aapkefather1872

3 жыл бұрын

@@EconomicsExplained Keep up the great work!

@gordonjohnson2497

3 жыл бұрын

You live in the future economic crown of the world my friend. India will in my opinion surpass USA before china does

@Arkenism

3 жыл бұрын

Making it in at 3:10 now 😂

@HarshJain-it2bg

3 жыл бұрын

It's 3:51 Now

Thanks mate!

great video, really well done

Brilliant as always

Its 2:19am here, but its an EE upload, So cant afford the sleep.

😅 says Shenzhen hasn't got real innovation and shows DJI drone video...

The way this channel simplifies concepts is outstanding. After about a year of watching your videos, I can finally understand the economic aspects of news articles, keep going!

@niuchajianfa6222

3 жыл бұрын

you mean talking bullshit lol?

Very interesting. Thanks for this

duuuude you've gotta stop taking so long to release these AMAZING content

I thought Shenzhen was a hardware-based "Silicon Valley"( as opposed to software).

@norse8825

3 жыл бұрын

Silicon Valley is very much both hard and software based. Look at Western Digital as an example, probably the best storage manufacturers in the world.

@hendrikdependrik1891

3 жыл бұрын

@@norse8825 Do they make their storage in Silicon Valley though or is it just the designing over there?

@kenh758

3 жыл бұрын

I guess “tiktok,” one of thousands of apps that are innovated in Shenzhen, is just pedestrian given its billions of subscribers.

@modernkennnern

3 жыл бұрын

@@kenh758 A single invention, almost irregardless of how big it is, does not make an entire city

@kenh758

3 жыл бұрын

@@modernkennnern well, what about Huawei? If it didn’t do well would it be under the radar screen of the largest military apparatus of the world?

Thanks for a great video

Great work. I'd love to see a video about the economics of cities: how they spend their money, set infrastructure budgets, etc... SimCity in real life, as it were.

Shenzhen actually is very innovative when it comes to hardware. I lived there 4 months. But is more than that, the whole region is a hub for manufacturing. Most probably there is more than one object in your house made there.

@Michelle_Wellbeck

3 жыл бұрын

I guess Economics Explained has jumped on the bandwagon of putting down China.

@mastertoad2

3 жыл бұрын

@@Michelle_Wellbeck yes, i also think he compares US software to Chinese software from a perspective of a western buyer. Of course if you live in Australia, Baidu or Alibaba has not influenced you. But the same could be said of Chinese buyers and Amazonz

@robgrenzeback3425

3 жыл бұрын

Shenzhen is a hub for manufacturing but not for technology development & designs. Just like Apple's iphones are developed & designed in Silicon Valley but assembled/manufactured in Shenzhen.

@kaleb5926

3 жыл бұрын

@@Michelle_Wellbeck In the end its China putting down itself. If you're gonna make a special economic zone at least let some more freedom in it. People want to invest in China not the CCP

@JM-cv7nv

3 жыл бұрын

@@Michelle_Wellbeck Not much has been invented there, was his point. They may produce things when the patent runs out, but this video was about innovation.

I knew about the $50k limit on currency exchanges from your channel however never thought about how that artificially increases the value of the RMB. Absolutely wild lol

Congrats on 1 million!

Gratz on 1m

I didn't realise that you'd hit 1 million. I'm a little late but congratulations on hitting a million subscribers 🎉

I'm the CEO of a tech company in Shenzhen. I respectfully disagree that Chinese business culture is risk averse. It's not. Chinese entrepreneurs make and crash companies at an insane rate, they are bullish like you can't believe, if your company doesn't IPO within few years of it's creation they consider it a failure, Shenzhen speed is something unheard of for me, you really have to be here to understand it. Everything from the consutrction of subway lines (one line per year !) to the recruitment of engineers (they never stay in the market for more than 10 days !) to the IPO of companies. I've worked in the Valley and in France before and I can say there's nothing like it. One problem with the Chinese market is that a Chinese company will always try to copy other people's products as soon as they can, "make or buy" they will always start by "buy" and move to "make" as soon as they humanly can. Of course this is a general feeling and not a rule, you have an ocean of patents being filed in the Greater Bay Area of Shenzhen and companies like Huawei have dominated the 5G market not by copying but by inventing from scratch. So I don't mean to look down on Chinese companies or whatever, but it's still a dominant rule of the Chinese market because the big players are doing it. If you're Google and you see a promising product, you acquire it. If you're Tencent and you see a promising product, you just copy it and kill the company. Those bad business examples will make more friction to innovation as you fear big players instead of trying to befriend them. And fear is a lose lose proposition. Again, there are beautiful examples of the opposite, like Huawai, who made a deal with Leica instead of just killing them and copying them.

@Xind0898

3 жыл бұрын

I recently came across a piece of an article talking about this phenomenon in China, and it provided a different perspective. The main argument is "The existence of those copycat players in China has pushed innovation both in product technology and also business model harder", because if your startup is building something that can be easily copied and become your direct competitions, then it only means you arent thinking hard enough about your venture, or your 'malt' as Warren buffet like to put it. The thing about the Chinese copycat companies is that they are GOOD at it. They are not only fast to copy, but also quick to build on top of it (even more polished user experience than the original). Innovating in this environment means you have to REALLY innovate in leaps and bounds, and not just baby step innovation.

@skipperson4077

3 жыл бұрын

no one talking about the BIG difference here, da govt.....

Very educational, well done

Awesome Video thanks

If this video would have existed last year, it would have saved my geography mark. Really good video.

Hi EE - Thanks for this informative video. I'd like to add that while this comparison is true from the perspective of tech, especially app alone, this is not true in the case of manufacturing; because Shenzhen is practically functioning as PRC's gateway of integrating foreign manufacturing INTO China. While it's true it's easier to recall what apps and techs are made and created in Silicon valley, you don't have to go far and take apart your phones, batteries, computers, lighting system and LCD screens to see many of them that originate from Shenzhen or The Greater Bay Area. Many of Shenzhen's tech ecosystem is also designed to ease and integrate your technological concept into manufacture IN CHINA using Chinese logistic and supply chains. For example if you have a concept product - you can create a prototype in 7 weeks in Shenzhen and have it ready to manufacture instead of 7 months elsewhere. Just a thought from a fan whose industry has done a lot of production from both Shenzhen AND SF.

Good stuff!

Reached one million subscribers. Congratulations 👏👏👏👏👏👏

Some of this stock footage is my hometown, Franklin, TN, downtown square. Small world.

@EasternDreamer615

3 жыл бұрын

It is a small world, I was born and raised in Nashville!

"This episode of Economics Explained is brought to you by acorns" That's nuts!

Fantastic video on a very interesting subject. The quality of these videos seems to only be going up :-)

I love your videos mate

Conscience information 👍

"dry powder" also refers to the fact that a lot of dry powder can be dangerously explosive.

Where were you? I just found your channel. After watching this video I had to subscribe. Great work. 👍👍👍👍👍👍👍👍

Good one mate.

Even after watching this video, I don't really see one as a success and the other as a failure, though you seemed to want to paint it that way. Shenzhen might not have brought about obvious consumer innovations, but afaik they've greatly optimized industrial manufacturing of electronics. Sure they might not design the iPhone, but they're the reason you can buy one for a somewhat affordable price. Aside from that, the long-term stability might not be a bad thing, considering the whole 2008 crisis and all... and now after the covid crisis China seems to not be doing bad at all. Perhaps I'm missing something, but I don't really see one as success and the other as failure.

@Spirit_Circle

3 жыл бұрын

you know that china is a dictatorship, right?

@fuleinist

3 жыл бұрын

A tale of two cities it is

@lucasward9506

3 жыл бұрын

China lies through their teeth about everything. That is what you are missing.

@user-gc1hg9sp9k

3 жыл бұрын

yes, just because their system is different doesnt mean is failed

@whoisjoe5610

3 жыл бұрын

The main problem here is the lack of business confidence due to a looming authoritarian government and one of the weirdest currencies in the world which is that way due to constant govt. intervention. Moreover, 20 of the top 25 "private" companies in Shenzheng are state owned, meaning the actual investments into China are not looking good, they are probably going to move to more stable economies.

I'm down to watch psychology explained.

@tylerdurden3722

3 жыл бұрын

Women Explained?

@psoltan

3 жыл бұрын

@@tylerdurden3722 Just watch Bill Burr's stand-up comedy to understand women. 😉

@Delgen1951

3 жыл бұрын

That would just convince you that you crazer than you are, just ask anyone taking a psych course in med/nursing school.

@PoKeKidMPK1

2 жыл бұрын

@@Delgen1951 as in they dont want to be there but feel they need to be for the greater good?, and thus suffer stress learning the problems they are against?, but those who contain the problems they try to help wont understand?

love the jake tran shout-out

Hey man, have you ever thought about dividing the video with the you tube feature by chapter. I think would be interesting. Thanks!

Came here from ur tweet. Great video as always

@EconomicsExplained

3 жыл бұрын

Thanks mate!

You've really stepped up your production game.

Great video as always :) Would definitely watch another video that goes further into detail about the under and overvaluation of RMB if you decide to make it!

THANK YOU ACORNS 😘

Is Shenzhen intended to be an innovation hub, or a manufacturing hub? It has been wildly successful in becoming the go to place for foreign companies to make things, as your previous videos have explored. Most products we use were designed in Silicon Valley, and assembled in Shenzhen. The capital flight problems is an interesting one, and leads to odd outcomes like a Chinese investment (specifically Hong Kong based) funded deli in New Jersey with only around 30k in annual sales but a $100 million market cap. I wonder what other valuation distortions it might be encouraging abroad?

@handlemonium

3 жыл бұрын

Yes Shenzhen is an innovation hub in the realm of improving products with new off-the-shelf parts (go watch some Strange Parts vids), manufacturing, and supply chains. There is some cutting edge stuff happening in China, just not as much as in the US. As for Silicon Valley even established and up-and-coming tech firms are setting-up or relocating other tech hubs like Atlanta, Austin, San Antonio, Boulder, Denver, Columbus, Huntsville, Boston, Portland, Pittsburgh, Seattle, Tampa, Minneapolis and the DC Area.

@rileykron6092

2 жыл бұрын

Innovation hub, this is obvious

There is a huge amount of innovation in Shenzhen, it's just that it's mainly small family companies, who funnily enough often don't have access to enough capital.

very interesting to reflect on

Shenzhen produces the tech for most of Asia. For those of us who live outside of Silicon Valley's reach, we have to rely on the alternatives. It's frustrating to see amazing startup products in America or elsewhere and find only a similar Shenzhen product is available, but it keeps their industry alive. For example, if you ever wished that Apple made household items, check out Xiaomi.

@fr00tloops

2 жыл бұрын

Very interesting company 🙂👍

@matt6740

2 жыл бұрын

Xiaomi has some really cool stuff! After living in China for years, the whole “China just copies” meme is getting old. There tons of nock offs, but also some really great innovations going on! Using wechat to pay for everything that so nice, moving back to the west felt like going back in time in some ways.

Hi I am from India and I have been a huge fan of your videos since long time !!! Have a request that can you make a video on economic consequences of "Brain Drain" as your next video?

@sr-3734tqp

3 жыл бұрын

Second that

You know it's gonna be quality content if it's economics explained. You should make a special series or playlist

Ur channel grew sooo fast

I like your videos man

Can you do a video on the economic of Quebec (canada) I currently live here and I can guarantee you that you’ll make some really interesting discoveries that I think need to be shared Thanks for your work I really do appreciated it, my curiosity for macro,micro, business was amplified because of people like you and now i work in finance and I enjoy everything of my career, thanks !

Ah yes, already gave it a like, even before watching the video!

@EconomicsExplained

3 жыл бұрын

Thanks mate!

@thejagtimes

2 жыл бұрын

@@EconomicsExplained youre hot

nice comparison. thx

Nice vid, hello from Shenzhen

@milosm9280

3 жыл бұрын

Are you using a VPN?

Eyy first comment good video once again been watching your channel for a long time now (First not including EE's comment)

Very nice video, keep up the good work! I have a question though, with these two places having the problems that they currently do, why have initiatives in other highly developed places like the EU and Japan largely remained fruitless? What's stopping highly developed countries like Germany, the UK or Japan from creating a high tech district that isn't bogged down by the problems of Shenzen/Silicon Valley?

@wavemaker2077

2 жыл бұрын

I do know that in Japan's case, seniority is still widely followed in a company. So innovations in companies doesn't happen because the older people are simply not as tech savvy as the younger generation but unfortunately, they are the decision makers.

@venividivici2233

2 жыл бұрын

Japan doesn't care about developing Technology in the domestic and global market and instead focuses on Manufacturing cars and motorcycles. they're doing a pretty good job, i see yamaha,honda,suzuki,toyota everywhere

I think this is the only video from EE I disliked. The view on China is overly simplistic and monolithic; essentially the same view the West have of Japan and Korea decades ago. I simply don't understand why some westerners keep making the same mistakes; is it some cultural thing to think innovation is race dependent? Go to your map at 2:23, how many of those companies were founded after 2000 and how many after 2010? The youngest company on that list is Stripe founded in 2010 and 6 were founded in the 70s' and 80s'. You are literally comparing Shenzhen, a city that became an innovation hub 10 years ago with Silicon Valley that have been around since the 60s' and stating Chinese aren't very innovative and are quite risk-adverse. I actually think this preconception regarding East Asians are why western economists have so much trouble explaining the rise of Japan, Korea and especially China. We can look at research papers going back 30 years and see western economists trying to forecast (fortune-telling really) the Chinese economy to stall soon because of communism / lack of innovation / risk-adverse / government heavy-handedness / birthrate / weather pattern. Economists already have a bad name for always predicting the last crisis but never the next one and this pigeonholing economies into existing theories doesn't help.

@Parrotisla

2 жыл бұрын

It’s hard to predict the future when you don’t have all of the information needed. People base their predictions on current information and try to project it out. It doesn’t take into affect changes in law and culture over time. China changes its laws and keeps a boot on the neck of their people to produce and bow down to authority. That definitely stifles innovation. Like the video states they strictly control their currency. If they let it be freely traded in economic markets their currency could crash. But they are the worlds industry hub now so that could keep the value higher than it should be. Almost everything is made in China. They’ve created a very controlled and too large to fail company/country. That doesn’t mean they can’t fail. There could be and probably will be some new product or economic invention in the future that changes the course of human history and collapses governments. You criticize a 15 minute video for being over simplified. Chinas economy and economics in general can’t be thoroughly covered in 15 minutes. Certainly could take a lifetime to study.

@Peizxcv

2 жыл бұрын

@@Parrotisla I criticized a video for being overly simplistic and dogma in explaining China’s rise in innovative industries and you criticize me citing the overly simplistic and dogma as reason why I am incorrect😂 Just wait and see. Western economic forecast on East Asian economies have never been correct so let’s see if this one will beat the odds

@nfzeta128

2 жыл бұрын

In a way this video was criticising China for being a more stable way to go about economic growth and the US for being unstable but previously explosive in growth. The benefits and disadvantages are also mainly from the perspective of a big company or investor. A GDP growing more than the stock market should be the norm honestly. Overshooting profits is a good way to just over-inflate currency and wealth. All that really says is that the country as a whole became prosperous faster than the wealthy benefited from that prosperity. This is also something that's easier for China which was quite poor a while ago. The difference will shrink going forward as the population's properity stabilises.

@doujinflip

2 жыл бұрын

Japan have zaibatsu, SK have chaebol, and China has the CPC, who are all monopolistic power brokers. The countries are all also very racialized, with their education and mass media regularly referring to their Chinese/Japanese/Korean race as a means of explaining their own achievements and exceptionalisms. The "strength through racial unity" is the image they themselves portray, and there really isn't a competing narrative when so much of the true business negotiations and decisions seem to happen only after hours in exclusive breakout groups behind closed doors with tons of alcohol.

Hey when will you be posting on Business Casual??Missing it.

The economic battle has just begun

@tomlxyz

3 жыл бұрын

How many times now?

@laurabenito4707

3 жыл бұрын

Exactly, and if an investment ain't in your possession, woah!

@motivationhub4301

3 жыл бұрын

Honestly, every should secure their future

@feather563

3 жыл бұрын

@@motivationhub4301 this

@motivationhub4301

3 жыл бұрын

@@feather563 Amazing. For great goals. ][+][1][3][4][7][7][3][6][8][0][5][2][ Wtspp

Last time I was this early EE had 100k subscribers.

This is brilliant

Thanks economics guy :)