Why did he get it wrong? What led him to think that consumption was such a – was much lower than –

Because nobody – in the beginning, nobody was looking.

All the Western economists were looking at the reported consumption numbers that come out to be 40 percent of GDP and accepted that.

It's been an open secret in the NBS and the World Bank that that's a garbage number and that – They're not counting services and also tanking a lot of – from the very beginning, they were tanking a lot of the pricing.

So consumption is – China's GDP is, in my estimate, on a purchasing power parity basis – we already did a lot of the math here in some of the articles that Hanfei has published – Other people have done this math, like Raphael Gutmann and CF40.

They'll come with different numbers.

But I get China's GDP is lowballed by 2x, largely from consumption.

And how are you going to make higher income until people pay higher prices? Who takes the first step is what I'm saying, right? Isn't there got to be a first step where either – Companies use credit to pay workers more to put out higher-priced incomes or perhaps and or consumers take out credit in order to afford this stuff.

Do you want to talk about that?

Yeah, sure.

So, um, lately there has been kind of a, a, a, uh, I won- well, I don't want to say revolution, but a recognition that some of the old ranking systems are just, uh, [laughs] non-operable anymore.

Um, 'cause every year things like US News and QS and, uh, the Times higher education ranking system, they spit out the exact same colleges for the top 10 or 20 year after year after year.

The, the positions might change a little, uh, but, uh, same schools get spat out, and the world has been turned entirely upside down by China, and it is not reflected anywhere in the university rankings.

However, there are a few other, uh, ranking, um, ins- institutions, uh, like Leiden, uh, based out of a university in Netherlands and, uh, what this article concentrated on was the Nature Index.

Uh, they are absolutely, um, or try to be absolutely objective, as in there is no goofy stuff like, um, like reputation, teaching quality, class sizes, number of international students, uh, count of Nobel-winning professors.

[laughs]

So let's, let's hear from Anfei to, um-

In economics terms, what China is doing is, um, flattening the supply curve.

It's putting more and more supply in there so that the supply curve is almost horizontal.

And when it looks like that, then, you know, if you've taken, um, you know, beginning of microeconomics, uh, what it is is the supplier surplus, that little triangle that the supply curve looks, nearly zero.

Mm-hmm.

But, uh, you know, the electric vehicle penetration in the US is like, whatever, five percent of the market when it's like sixty percent of the market in China.

That- that- that's a failure.

You know, that's pretty much a failure of, uh, um, of the EV industry in the US.