The Scale of the Phenomenon:Approximately 100 Chinese short drama productions starting monthly in LA.Film students heavily involved in various production roles.
Behind the Scenes: Production & Logistics:Fast-paced 7-9 day shoots, location accessibility, and detailed "run downs."
Labor practices: 12-hour turnaround, overtime, and high script output (10+ episodes daily).
Content, Audience, and the "爽" (Shuang) Factor:Dramatic genres: CEO power plays, revenge plots ("dog-blood" & "爽剧").Audience differences: Men in China vs. women (20-40) in the US.The appeal of "爽": Fast-paced, dramatic, and illogical storylines.
The Talent Pool:"Top-tier" short drama actors with constant bookings.
Experienced Hollywood actors from shows like "Grey's Anatomy."
Actor motivations: Craft practice, visibility, and new opportunities.
Salaries: $700-$2000 per day, based on data-driven popularity and Chinese investor preferences.
The Role of Hollywood and Chinese Investment:Primarily Chinese funding and control over content and casting.Limited Hollywood creative input.Leveraging Hollywood's infrastructure: locations, equipment, and crew.
Challenges and Future Perspectives:Limited US investment and understanding of the short drama formula.Director aspirations beyond short dramas.Sustainability tied to data and viewership on Chinese-funded apps.

Key Takeaways:

• A cultural and filmmaking collision fueled by Chinese investment.
• Fast-paced narratives catering to a global audience.
• Opportunities for Hollywood talent and crew.
• Creative control and content direction influenced by Chinese preferences.

• Early Hardship & Entrepreneurial Spark:Young Yu Donglai's childhood incident and his first forays into business, highlighting his early acumen and focus on turnover speed.
  
• From Factory Worker to Leader:His rise through the ranks, innovative reward systems, and the eventual resignation due to unfair treatment.
  
• Ventures into Risky Territory & Lessons Learned:Illegal reselling, arrests, debt, and the crucial support from his brother.
  
• A New Beginning: The Birth of Pangzi Store:The start of "Wangyue Lou Pangzi Store," and the focus on trust and authenticity.
  
• Building a Reputation on Trust:Genuine products, customer guarantees, and the "satisfaction guaranteed" return policy.
  
• Growth, Generosity, & National Contribution:High wages, charitable acts, and national recognition.
  
• The Transformation to Pang Donglai:Expansion, unwavering commitment to quality, and personal wealth.
  
• Facing Adversity: The Devastating Fire of 1998:The fire, customer loyalty, and rebuilding.
  
• Rebuilding & Reinforcing Core Values:Continued emphasis on service, employee well-being, and hiring practices.
  
• Expansion & a Focus on Quality:Pang Donglai Life Square, alliances, and the decision to close stores that didn't meet standards.
  
• The Pang Donglai Philosophy:Transparent information, employee well-being, customer feedback, and high-quality private-label products.
  
• Guiding Others & a Vision for the Future:Yu Donglai's influence on other retailers, and his long-term vision.
  

Key Takeaways:

• The power of integrity and prioritizing people over profit.
• The importance of meticulous attention to detail and continuous improvement.
• Yu Donglai's journey from hardship to success, offering valuable lessons for businesses worldwide.

《Nezha 2》 achieved significant artistic and commercial success, marking a turning point for Chinese animation.

• Artistic Achievement: The film was praised for its reinterpretation of the "Nezha" story, focusing on the theme of "individual destiny versus collective will". It incorporated Chinese cultural elements like Taoist symbols and imagery inspired by the Sanxingdui culture, resonating with domestic audiences and sparking academic discussions.
• Box Office Success: for now《Nezha 2》has achieved a box office of 5.3 billion, and it is still growing, which is considered a "nuclear explosion-level" success that is reshaping industry rules.
• Commercial Strategies:The film strategically integrated Chinese cultural elements, such as Taoist symbols and imagery inspired by Sanxingdui, turning them into recognizable visual symbols. This resonated with local audiences and stimulated in-depth discussions, evidenced by millions of related videos on platforms like Bilibili.
  For international distribution, the film's concepts were adapted to Western audiences. For example, "混元珠" (Hun Yuan Zhu) was translated to "Primordial Chaos Core".
• Technological Innovation: The team developed a "fluid simulation system 2.0," enhancing the efficiency of calculating fluid collision scenes by 400% and applied for 12 patents. They also partnered with Huawei to develop a "cloud rendering farm," reducing the cost of single-frame effects from 32 RMB to 7 RMB, challenging the technological dominance of Hollywood.
• IP Development: The film launched the "Magic Child Universe" plan, collaborating with the Sanxingdui Museum to release a bronze Nezha figure that sold out within 48 hours and authorizing NetEase to develop the mobile game "Nezha: Awakening," which exceeded 20 million pre-registrations.
• Industry Impact:The film's success led to increased investment in the Chinese animation industry. Tencent established a 5 billion "National Comic 3A Fund," and venture capital firms began investing in animation teams.
  Talent moved to Chengdu, forming a "third pole of Chinese animation".
  International investment increased, with Saudi Arabia's Public Investment Fund purchasing overseas distribution rights for $120 million.
• Team Philosophy: The team at Coco Bean Animation displayed a strong dedication to their work, reflected in slogans like "Rather exhaust ourselves than let our competitors relax" and "Animation is a religion of frames." This commitment was evident in their meticulous attention to detail, such as refining character expressions to work even when obscured by a mask and spending days debating a single line of dialogue.
• Rejection of Commercialism: The team declined commercial placements, valuing audience enjoyment over advertising revenue.

This episode discusses DeepSeek as a representative of Chinese AI innovation, which is changing AI economics and the scaling law, and will profoundly impact the global AI industry.

• DeepSeek's Rapid Growth: DeepSeek-R1, a chatbot launched in January 2025, rapidly gained users, reaching 125 million within two weeks, surpassing ChatGPT's growth rate. By early February 2025, DeepSeek's daily active users (DAU) exceeded 40 million, approaching ChatGPT's DAU.
• Impact on the AI Industry: DeepSeek's rise has had a notable impact. On January 27, 2025, it topped the U.S. App download chart, coinciding with a significant drop in NVIDIA's stock value.
• AI Laws: Sam Altman of OpenAI has stated three AI laws, in which AI model intelligence is proportional to the logarithm of resource input, AI usage costs are rapidly declining alongside exponentially growing demand, and the linear growth of AI leads to an exponential increase in socio-economic value.
• DeepSeek's Advantages: DeepSeek brings clearer technology routes, significantly reduced development and application costs, and a more open-source sharing model, reshaping the AI industry. This shift transforms the scaling law from an oligopoly-centered model to an inclusive one.
• Performance: DeepSeek has reached a level comparable to the most advanced U.S. models in both pre-trained foundational models and post-trained inference models. DeepSeek-v3 excels in Chinese question answering accuracy, long text processing, mathematical abilities, and coding, outperforming GPT-4o and Claude-3.5-Sonnet. The cost efficiency is notable, with DeepSeek-v3's training cost approximately one-tenth of that of leading European and American models.
• Innovation: DeepSeek focuses on engineering and low-cost innovation within existing frameworks. For pre-trained models, DeepSeek optimizes memory usage, workload distribution, and hardware interaction. For inference models, it uses a simpler and more efficient path, drawing inspiration from AlphaZero's training methods.
• Engineering Innovation: The success of DeepSeek highlights the value of engineering innovation in the AI industry. Unlike the "AI Seven Sisters" in the U.S., DeepSeek's origins lie in a Chinese quantitative hedge fund research team.
• Changing AI Economics: DeepSeek's advancements are changing AI economics and the scaling law. The original oligopoly-driven scaling law, dominated by U.S. tech giants, is shifting towards a more inclusive model due to reduced innovation costs and open-source approaches. This shift broadens participation in the AI industry beyond the dominant U.S. tech companies.
• Cost Reduction: DeepSeek initiated a price war in China's large-scale model API market in May 2024, forcing other companies to follow suit. This has led to significantly lower AI usage prices in China compared to the U.S.

《Black Myth: Wukong》 achieved phenomenal commercial success, demonstrating the potential for Chinese-developed games to achieve global recognition and profitability.

• Cultural and Artistic Achievement: The game reimagines the classic tale of Journey to the West into a dark, epic story, resonating with players through its unique interpretation of Eastern philosophy and visual elements like Taoist symbols and Dunhuang murals.
• Financial Success:The game achieved approximately 28 million global sales in 2024, surpassing the first-year sales of The Witcher 3.
  Total revenue reached 9 billion RMB, equivalent to the annual revenue of miHoYo in 2023.
  Overseas revenue accounted for 58% of total earnings, significantly higher than the average of 28% for top Chinese games.
  The player payment rate is 91.2%, exceeding the Steam platform average of 67%.
• Strategic Business Decisions:The game defied the trend of low-priced domestic games by setting a price of 298 RMB in China and $60 overseas, leveraging its quality to establish a strong perceived value.
  It was launched simultaneously on multiple platforms, including PlayStation, Steam, Epic, and WeGame, utilizing Sony's global distribution network to mitigate geographical risks.
• Impact on the Industry:The game's success has led to a re-evaluation of the gaming industry, with its market value reaching 30 times its price-to-earnings ratio, boosting the stock prices of other Chinese game companies.
  It has spurred investment in single-player games, with companies like Tencent and miHoYo establishing funds to support their development.
  The game attracted international investment, such as Saudi Arabia's Public Investment Fund acquiring a 5% overseas distribution stake.
• Cost Efficiency: The game was developed for approximately $40 million (300 million RMB), significantly less than the average budget for Western 3A games.

《Black Myth: Wukong》 showcases how Chinese game developers can create globally competitive cultural products with unique pricing power, challenging traditional industry norms.

This week, we dive deep into the latest moves of Keeta, China's food delivery giant, as they embark on an ambitious expansion into the competitive MENA (Middle East and North Africa) market. We dissect Keeta's strategic approach, analyze the unique challenges they face, and discuss the potential impact on the existing delivery landscape. From navigating cultural nuances to adapting to logistical hurdles, we explore how Keeta plans to conquer the palates and pocketbooks of MENA consumers. Join us as we unpack the data, decode the strategies, and speculate on whether Keeta can replicate its Chinese success in this dynamic new frontier.

Mixue's Origins and Growth: The audio may start with Mixue's humble beginnings as a small shaved ice stand in 1997 and trace its remarkable journey to becoming a global beverage giant with over 45,000 stores. The company's founder, Zhang Hongchao, and his early vision for affordable treats might also be discussed.

Low-Price, High-Volume Strategy: A central theme could be Mixue's successful business model of offering high-quality beverages at extremely competitive prices. This might involve analyzing their vertically integrated supply chain, which enables them to control costs and maintain consistent quality across their vast network. The sources mention Mixue's unique production capacity and cost management strategies in sourcing ingredients like tropical fruits.

Franchise Model and Expansion: The podcast might delve into Mixue's franchise model, which has been instrumental in its rapid expansion across China and internationally. The sources detail the standard franchise agreements used in China and overseas, covering aspects like brand usage, marketing cooperation, and termination clauses. They also highlight Mixue's success in Southeast Asia, where they hold the position of the largest freshly-made tea brand with over 4,000 stores.

The Snow King Mascot and Marketing: The audio may explore the role of Mixue's mascot, the Snow King, in building brand recognition and driving viral marketing campaigns. The Snow King's popularity, catchy jingles, and animated presence likely contribute to Mixue's strong brand image.

Diversification into Coffee with "Lucky Coffee": The podcast could discuss Mixue's venture into the coffee market with their "Lucky Coffee" brand. This segment might analyze their strategy of targeting the affordable coffee segment and their commitment to quality despite low prices. The sources mention their focus on key quality factors like coffee beans, milk, equipment, and on-site preparation methods.

DeepSeek is focused on fundamental research and innovation in AI, rather than immediate commercial applications. This is reflected in their approach to model development, which emphasizes exploring new architectures and training methodologies, as well as their commitment to open-source their models. The company prioritizes being at the forefront of technology, aiming to contribute to the global AI ecosystem, rather than simply adopting existing innovations.

DeepSeek's models have achieved high performance with remarkable cost-efficiency, challenging the conventional view of AI development. For example, DeepSeek-V3 was trained at a fraction of the cost of models like GPT-4 and Llama 3. DeepSeek has achieved this through innovations such as a Mixture of Experts (MoE) architecture and multi-token prediction (MTP), leading to reduced computational costs and faster processing speeds. The DeepSeek-R1 model also demonstrated enhanced reasoning capabilities, achieved through a novel approach to reinforcement learning that uses a simple reward system.

DeepSeek emphasizes a unique organizational culture and talent management approach, which enables its innovative achievements. The company hires young, talented individuals from top universities and fosters a flat, collaborative environment where employees can take initiative and direct their own work. DeepSeek does not use traditional KPIs or assigned tasks, and instead values employees' curiosity and passion. This approach encourages innovation and allows for flexible resource allocation, and the company is careful to select employees with aligned values.

Vertical Integration and Cost Control: Wang Chuanfu adopted a strategy of vertical integration, controlling as much of the production process as possible, from raw materials to finished products. This approach, similar to that of Foxconn, enabled BYD to minimize reliance on external suppliers, reduce costs, and maintain tight control over quality. BYD's ownership of its own tooling factory, for example, allowed it to produce high-quality molds at a fraction of the cost of international suppliers, giving them a competitive edge. This focus on cost control was particularly important in the highly competitive Chinese automobile market, where BYD successfully challenged established players with its affordable, high-value F3 model.

Technological Innovation and "Non-Patented Technology": While acknowledging the importance of respecting intellectual property, Wang Chuanfu emphasized leveraging "non-patented technology," creatively combining existing technologies in innovative ways to avoid infringement while still achieving high performance and cost-effectiveness. This approach allowed BYD to circumvent costly licensing agreements and compete directly with established giants like Sony and Sanyo in the battery market. A prime example of this strategy is the development of BYD's iron battery technology, which powered its groundbreaking F3DM dual-mode electric vehicle.

Strategic Vision and Boldness: Wang Chuanfu demonstrated a remarkable ability to identify opportunities and make bold moves, even in the face of skepticism and doubt. His decision to enter the automobile industry in 2003, acquiring Qinchuan Automobile, was met with widespread disbelief. However, he firmly believed in the potential of the Chinese car market and BYD's ability to succeed. His vision extended to pioneering electric vehicles, as exemplified by the F3DM and later the F6DM. This forward-thinking approach, coupled with a willingness to challenge conventional wisdom, positioned BYD as a leader in the emerging field of electric mobility.

The First Globalization (roughly 1870-1914)

• Rise: Driven by innovations like the steamship and the telegraph, which made global travel and communication faster and cheaper. The adoption of the gold standard stabilized exchange rates, encouraging cross-border trade and investment.  Free trade policies, championed by thinkers like David Ricardo, further fueled economic integration.
• Fall: World War One (1914) brought this era to an abrupt end, disrupting trade, diverting resources to war efforts, and fueling nationalism. Protectionist policies aimed at national self-sufficiency emerged, further hindering global economic integration. The subsequent Great Depression exacerbated these trends, as nations turned inward to protect their domestic industries.

The Second Globalization (roughly 1945-1980)

• Rise: The post-World War Two era saw a deliberate effort to rebuild the global economy and foster cooperation. The Bretton Woods system (1944) provided exchange rate stability and promoted trade, while the General Agreement on Tariffs and Trade (GATT) (1947) lowered trade barriers. These factors led to a period of sustained economic growth and expansion of international trade.
• Fall: The collapse of the Bretton Woods system in the late 1960s and early 1970s ushered in a period of floating exchange rates and greater currency volatility. The 1973 oil crisis further destabilized the global economy, leading to a more fragmented and less predictable environment for international trade and investment.

The Third Globalization (roughly 1980-2010)

• Rise: This period, often referred to as "hyperglobalization," witnessed a surge in trade and investment fueled by several factors:The ascendancy of free-market ideologies, championed by leaders like Margaret Thatcher and Ronald Reagan, resulted in widespread deregulation.
  Technological innovations in computing, communication (the internet), and transportation (the shipping container), dramatically reduced the costs of production and the movement of goods globally.
  The collapse of communism in 1989 opened up vast new markets.
• Fall: The peak of the Third Globalization occurred around 2008, with a gradual decline since then due to several factors:The 2008 financial crisis exposed the interconnectedness and fragility of the global financial system, leading to a sharp drop in trade and investment.
  Rising nationalism and protectionism, fueled by job losses and concerns about inequality, resulted in a backlash against globalization.
  The COVID-19 pandemic exposed vulnerabilities in global supply chains, forcing companies to re-evaluate their dependence on intricate global production networks.

The Fourth Globalization (emerging)

The sources point to an emerging Fourth Globalization that is characterized by the increasing importance of services, ideas, and data. While globalization is retreating in terms of physical goods and manufacturing, it's accelerating in the realm of the digital and intangible.

Factors driving this shift include:

• Technological advancements like 3D printing, automation, artificial intelligence, and more affordable small-scale manufacturing, are reducing reliance on large, centralized factories.
• Shifting consumer preferences towards services, experiences, and digital products are impacting demand for physical goods.
• The increasing service-orientation of manufacturing itself, with greater emphasis on research, design, software, and after-sales support.

The Fourth Globalization presents unique challenges for businesses:

• Building agile and resilient supply chains that can adapt to disruptions and uncertainties.
• Navigating a complex and volatile trade policy environment marked by protectionism and regionalization.
• Developing robust strategies to protect and leverage intellectual property in a globalized digital economy.

To thrive in this new era, companies need to embrace a service-oriented mindset, invest in digital transformation, and prioritize attracting and developing highly skilled talent.