korrents

Dan Wang

@dan-wang · 32 positions · 1 change of mind

Writer and analyst of Chinese technology and industry, for years based in Beijing and Shanghai, best known for his annual letters and for the argument that manufacturing capability lives in accumulated process knowledge rather than in tools or intellectual property.

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  1. The trouble with Xi Jinping is that he is 60 percent correct on all the problems he sees, while his government’s brute force solutions reliably worsen things.

    2023 letterdanwang.co 1st of 10 in this piece

    government

  2. While 50 percent of China’s economy might be dysfunctional, the 5 percent that’s going spectacularly well is pretty dangerous to American interests.

    2023 letterdanwang.co 2nd of 10 in this piece

    ChinaAmerica

  3. The foundations of China’s success in EVs were built a decade ago, when the state decided to bet on batteries, and then bought up a lot of the mines for these metals.

    2023 letterdanwang.co 3rd of 10 in this piece

    Chinabatteries

  4. Though companies are relocating production to India and Vietnam, China is going to remain the world’s largest manufacturer for many more years to come.

    2023 letterdanwang.co 4th of 10 in this piece

    China

  5. China built half of the world’s ships (by gross tonnage) in 2022, while the US had 0.2 percent of capacity: in practice, this meant that while China builds hundreds of new ships a year, the US builds three to five.

    2023 letterdanwang.co 5th of 10 in this piece

    ChinaAmerica

  6. I worry however that one of America’s superpowers is to spin up yarns to reduce the urgency for action.

    2023 letterdanwang.co 6th of 10 in this piece

    ChinaAmerica

  7. It is that China will not fade away, meaning that America must reform itself for a protracted contest with a peer competitor.

    2023 letterdanwang.co 7th of 10 in this piece

    ChinaAmerica

  8. So it feels to me that the US is treating its deficiencies — an inability to build stuff or create a functional system for admitting high-skilled migrants — as mysteries to be endured rather than problems to be solved.

    2023 letterdanwang.co 8th of 10 in this piece

    immigrationAmerica

  9. And Xi Jinping has formally de-prioritized economic growth as China’s top task.

    2023 letterdanwang.co 9th of 10 in this piece

    China

  10. As I’ve written in each of my previous letters, the party’s strangling of free expression has rendered China into a pitiful underperformer relative to Japan and South Korea in the creation of cultural products.

    2023 letterdanwang.co 10th of 10 in this piece

    Chinacensorship

  11. 11 months earlier
  12. And on balance I believe we should think of the Chinese state today as an autocratic regime that is occasionally capable of economic pragmatism rather than a technocratic regime that slips occasionally into Marxist faults.

    2022 letterdanwang.co 1st of 7 in this piece

  13. First, it increasingly resembles a crew of firefighters who bring extraordinary skill to dousing fires that they themselves ignited.

    2022 letterdanwang.co 2nd of 7 in this piece

  14. Second, China’s problem is usually not too little state capacity, but too much.

    2022 letterdanwang.co 3rd of 7 in this piece

    China

  15. Beijing decided to partner with Russia, an imperial aggressor, when it is the US and Europe that have markets and technology.

    2022 letterdanwang.co 4th of 7 in this piece

    EuropeChinaRussiaAmerica

  16. Whereas the US has a track record of doing great science, China’s technology competitiveness is grounded in manufacturing capabilities.

    2022 letterdanwang.co 5th of 7 in this piece

    China

  17. Consider the solar industry, for which the US laid the scientific groundwork, only for Chinese firms to make all the photovoltaic cells.

    2022 letterdanwang.co 6th of 7 in this piece

    solarAmerica

  18. 14 months earlier
  19. Never has any economy grown so much while producing so few cultural exports.

    2021 letterdanwang.co 2nd of 5 in this piece

    China

  20. It has displayed a stronger record of reform than any other developing country, as the leadership keeps pulling off politically-difficult tasks: shrinking the state sector, re-orienting the economy towards export-led growth after WTO accession, and so on.

    2021 letterdanwang.co 3rd of 5 in this piece

    governmentChina

  21. Beijing diagnosed the problems with financialization earlier than the US, where the problem is now endemic.

    2021 letterdanwang.co 4th of 5 in this piece

    ChinaAmerica

  22. The leadership is targeting a high level of manufacturing output, rejecting the notion of comparative advantage.

    2021 letterdanwang.co 5th of 5 in this piece

    China

  23. The US focus on efficiency has revealed the brittleness of its economy, which has neither the manufacturing capability to scale up domestic production of goods nor the logistics capacity to handle greater imports.

    2021 letterdanwang.co 6th of 5 in this piece

    America

  24. 2 years earlier
  25. I find it bizarre that the world has decided that consumer internet is the highest form of technology.

    2019 letterdanwang.co 1st of 11 in this piece

  26. In fact, I suspect that Chinese firms should be considered underperformers as a whole.

    2019 letterdanwang.co 2nd of 11 in this piece

  27. We should think of technology as a living product, which has to be practiced for knowledge even to be maintained at its current level.

    2019 letterdanwang.co 3rd of 11 in this piece

  28. I believe that the hard-to-measure process knowledge is more important than the more easily observable tools and IP.

    2019 letterdanwang.co 4th of 11 in this piece

  29. Today, Chinese workers produce most of the world’s goods, which means that they engage more than anyone else in the technological learning process.

    2019 letterdanwang.co 5th of 11 in this piece

  30. First, even if most of the workforce learns little, a few thousand line engineers become the world’s greatest experts in electronics assembly.

    2019 letterdanwang.co 6th of 11 in this piece

  31. These hubs allow for tight connections between R&D and manufacturing, shortening the circulation of knowledge in a production loop.

    2019 letterdanwang.co 7th of 11 in this piece

  32. That bet has failed at least in technologies that include high-speed rail, shipbuilding, and telecommunications equipment.

    2019 letterdanwang.co 8th of 11 in this piece

  33. And it’s difficult for any country to monopolize a key technology over the long term.

    2019 letterdanwang.co 9th of 11 in this piece

  34. One lesson is that technology is highly path-dependent.

    2019 letterdanwang.co 10th of 11 in this piece

  35. The skills US workers learned in the process of becoming an industrial giant helped set the US up for technological leadership over the rest of the century.

    2019 letterdanwang.co 11th of 11 in this piece

    America