Joining me today is Chim Lee, Senior Analyst at the Economist Intelligence Unit. He works in EIU’s China and Asia teams, and is based in the company’s Beijing and Hong Kong offices.

He leads EIU’s research on China’s advanced technologies, Climate change, Energy, Semiconductors, and Artificial intelligence, and also covers how China’s industrial policies link up with the broader diplomatic and macroeconomic dynamics.

Our conversation starts with China’s newly announced 15th Five-Year Plan proposal, which reveals the country's next priority and how it may impact its economy, society, and trade relations with the rest of the world.

We then dove into the current involution 内卷 issue, particularly zooming in on the solar and EV sectors. Then we look at the data center build-out driven by the AI boom and how local and regional governments are making sure involution does not hamper this sector.

Finally, Chim reflects on his work and his analysis of China’s economic planning and innovation direction.

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They delve into the strategic priorities outlined in the plan, including self-reliance in technology, maintaining manufacturing dominance, and the role of private and public sectors in driving economic growth. The conversation also touches on the challenges of overcapacity and the evolving landscape of China’s international cooperation.

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* China’s Five-Year Plan signals strategic priorities.

* Focus on self-reliance in technology and innovation.

* Maintaining manufacturing dominance is crucial.

* Private sector plays a key role in economic growth.

* Overcapacity remains a challenge in various sectors.

* International cooperation is evolving in China’s strategy.

* AI and new energy are critical emerging industries.

* China’s economic planning involves both public and private sectors.

* The plan addresses geopolitical tensions and trade flows.

* China’s approach to technology is both strategic and adaptive.

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