Scott Galloway is WRONG: China Didn't Steal The Future, They Built It!

Added: 2026-05-16

[00:00:00]Where's China? I I personally believe we should kiss and make up with China. I I think that if you were to the largest tax cut in history would arguably be that China and the US are cooling in the thaw of US-China relations. We have IP and innovation and capital formation.

[00:00:13]They have the world's greatest supply chain and manufacturing capabilities.

[00:00:17]So, I think working together you just bring down the cost of everything everyone buys around the world by 3 to 10%. At the same time, we need we need to recognize that we have had an asymmetric trade policy with China that has benefited them more than us. They effectively steal our IP and then sell us our back to us at 40 to 60 cents on the on the dollar.

[00:00:36]>> He claims China effectively steals American IP and then sells it back at 40 to 60% on the dollar. But, here's a problem, Scott. China doesn't need to steal technology America doesn't have.

[00:00:47]And right now, in most cutting-edge sectors, China is ahead. Let's go through the facts. AI and generative AI.

[00:00:55]China now files more generative AI patents annually than all other economies combined. China leads in open-source AI models. A shift with major implications for the future of AI development. Deep Seek proved that China can match frontier US AI capabilities at a fraction of the cost. That's not stolen technology. That's superior engineering. Let's talk about batteries and EVs. China controls 70 to 75% of global EV battery manufacturing. CATL and BYD are the world's largest battery manufacturers. These aren't stolen designs. They are original innovations that have made Chinese batteries the gold standard globally. American companies are now buying Chinese batteries because they're better and cheaper. And semiconductors. China is advancing rapidly in semiconductor technology. While the US still leads in the most advanced chips, China is closing the gap and dominating the mid-range and specialized semiconductors. Again, not stolen, developed. Let's talk about high-speed rail. China has 70% of the world's high-speed rail network. The US has zero operational high-speed rail systems.

[00:02:06]That's not stolen technology, Scott.

[00:02:08]That's execution and investment. Solar and wind. China also dominates global solar panel production and wind turbine manufacturing. So, when Galloway says China steals American IP and sells it back cheaper, what he's really saying is China took some American old technology, improved it, and now they're beating the US at it. That's not theft. That's called competition. That's called innovation. Let's talk about innovation gap for a second. How do you steal technology for high-speed rail from a country that doesn't have any?

[00:02:44]Huh?

[00:02:45]How do you copy a 54% lead in industrial robotics from a nation that's still offshoring its manufacturing? How do you plagiarize battery technology when the US doesn't even have a domestic battery manufacturing base anymore?

[00:03:00]The US isn't just behind in these sectors. The US isn't even in these sectors. There's no competing. There's only spectating. The real issue isn't that China stole American technology.

[00:03:13]The real issue is that the US spent the last two decades telling itself it was winning while China was actually building the future. The US was busy fighting wars in the Middle East while China was building supply chains, manufacturing capacity, and technological expertise. And now, when looking at who's leading in batteries, AI, solar, EVs, and robotics, it's not America. It's China. So, really thoughtful, strategic, um, trade policy.

[00:03:44]Stop all the finger-pointing. Can you imagine how powerful we'd be if the Chinese and the US decided they had shared interests and and militarily or kinetically and diplomatically try to coordinate. I mean, that would just be staggering. And I think some of that comes from a recognition that we are no longer the, you know, there's no longer a hegemony here. That while we'd like to stay the singular superpower, that's not going to be possible.

[00:04:07]And while we should probably, in my view, maintain our military leadership, 700 bases overseas, nobody can deliver violence like us. The I don't think China has an operating aircraft carrier.

[00:04:16]If they do, it doesn't have the capability. I think they have two overseas airbases or military bases, anyways. I think there's reason to try and do a better job of getting along.

[00:04:25]Uh I would go long China from an investment standpoint. Although, I think you have to be engaged in stock picking because the controls of the SEC there it definitely seems a little bit more, I don't know, sketchy, if you will. And they their SEC and their regulation is for control. Ours is for growth.

[00:04:42]But I there's just like there's just no getting around it. Every time I go to China, and I haven't been since pre-COVID, I'm sort of blown away and I'm like it's impossible not to take these people very, very seriously.

[00:04:53]And if you look at what's happening, um I think we're probably seating power to China in the Iranian conflict uh because they are I mean, they're dependent upon energy, but they built a lot of their own energy. They're seen as more rational actor. You know, just I I I think it's like quite frankly, despite the demographic problems, despite the over-leveraged real estate market, they have the ability, and this is the advantage of an autocracy, to think more long-term. They They have 50-year plans.

[00:05:20]We We have 5-month plans. Their high-speed rail, a third of air traffic is down between certain cities, and that's a good thing because they have the largest network of high-speed rail now in the world. Whereas, our Citizens United lets airlines and automobile companies get in the way of any It's just unbelievable we don't have a high-speed rail system in the United States. It's just unbelievable.

[00:05:40]Uh but we have entrenched interests that get in the way. At the same time, you know, our tech sector is still dominant.

[00:05:46]We still take more risks. We still have much better brands, much more creativity.

[00:05:51]So, this is all a word salad to say, yeah, who's who's the winner here? The US or China? And I think the answer is yes. Look, the takeaway here shouldn't be China is good and America is bad.

[00:06:04]The takeaway is that the West is completely delusional.

[00:06:07]This is a reaction to a shift in reality that most people are simply too scared to look at.

[00:06:13]The West has spent years telling itself that China's collapse is imminent. That their demographics will doom them.

[00:06:20]That their real estate market would crash their economy. And while waiting for them to fail, China quietly took over the industries of the future. The era of undisputed American hegemony is over.

[00:06:33]It's not ended. It's ended.

[00:06:35]The containment strategy failed. The export controls backfired. The tariffs just raised prices for American consumers.

[00:06:43]So, I have a question for you. Do you feel the economic news tightening in your own life?

[00:06:49]When you look at inflation, cost of goods, and the state of American infrastructure, do you feel like you're living in the undisputed greatest country on Earth?

[00:06:59]Or do you feel like you're paying the price for an empire in denial?

[00:07:03]Let me know in the comments below.

[00:07:06]If you got any value from this video, hit that like button, subscribe to the channel, and ring the bell.

[00:07:11]And as usual, guys, thanks for watching.

[00:07:13]And until next time.

[00:07:15]Bye.

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