Ep 31 - The involution will not be televised

The Trivium China Podcast

Is Beijing finally gearing up to address chronic oversupply – and resulting price wars – in its NEV and other cleantech sectors?

Trey McArver joins Trivium China Podcast host Andrew Polk this week to discuss just that question.

• Specifically, they examine what may be the early signs of a major policy shift – meant to break through the structural causes that keep industries from consolidating and zombie firms from exiting the market.

The two discuss:

• The most recent meeting of the Central Commission for Financial and Economic Affairs – which took direct aim at these issues
• Other signs that momentum is building for a more forceful approach
• The ongoing challenges that such a policy pivot would face
• Parallels between this moment and mid-2016 – the last time a significant new macro policy framework was rolled out

The gents also dive into their takeaways from the June Politburo meeting – as the Party looks to better coordinate its top policymaking bodies – and touch briefly on the latest rumors that Xi Jinping is losing his grip on power.

Spoiler alert: We don’t buy the rumors.

It’s another fun one – so enjoy!