Podcast Summary: The Prof G Pod with Scott Galloway

"China Decode: Why We’re Living in a Labubu Economy"

Date: September 16, 2025
Hosts: Alice Han and James King

Overview

This episode of the Prof G Pod’s “China Decode” dives into three key topics: the reality and dynamics of China’s current stock market rally, the significance of Ethiopia’s Grand Renaissance Dam as a symbol of China’s growing influence in the Global South, and the surprising global rise of the “Labubu” plushie, highlighting China’s emerging success in exporting pop culture. The conversation is sharp, data-driven, and peppered with anecdotes and memorable quotes, all through a centrist, global lens.

I. Is China in a Bull Market?

Segment Start: 00:56

Main Discussion Points:

• Current Market Performance: Chinese stocks (mainland and Hong Kong) are up 30% YTD; insurers have added $90 billion in equity—a major confidence vote (02:14).
• Investor Mood Shift: On the ground, both policymakers and businesses are more optimistic than during the spring “China is back in business” vibe shift (01:43, 02:14).
• Beijing’s Policy Approach: The government wants a “slow and steady rally,” aiming to restore domestic confidence without risking a bubble (02:14, 04:46).
• Changing Investor Structure:
  • Retail dominance is waning as more institutional investors (and insurance funds) are permitted in, building a “more intelligent, educated capital market system” (04:46).
  • Everyday investors are getting more sophisticated (buying ETFs, using Alipay platforms) (04:46).

Notable Quotes & Moments:

• “No one is talking about tariffs or trade. Everyone's talking about the stock market for the first time.” – Alice Han (02:53)
• “We're seeing margin trading return to about 2015 levels...It’s showing the level at which both domestic and foreign investors are playing back into Chinese stocks.” – Alice Han (03:35)
• “The main theme that I saw...this idea of a slow bull run or a quiet bull run.” – Alice Han (02:16)
• Anecdote: In 2015, a man gave his wife “99 stocks” for Valentine’s Day since “99” means “for a long time” in Mandarin. “I don't know whether his love lasted that long, but sadly the stock market bubble didn't last that long.” – James King (06:39)

Analysis and Skepticism:

• While fundamentals (low P/E ratios) support more upside, both hosts agree the government’s top priority is stability; interventions are expected if markets get too frothy (08:10).
• Foreign funds and hedge funds are returning to China, but not at pre-COVID levels (09:11).

Summary:
China’s market rally is real but measured, reflecting government control and a maturing investor base. Growth sectors (semiconductors, AI, biotech) overlap with areas targeted by U.S. technology restrictions, further fueling local investment (10:44).

II. China's Growing Influence in the Global South: Ethiopia’s Grand Renaissance Dam

Segment Start: 13:22

Main Discussion Points:

• Ethiopia’s “Mega Dam”: The Grand Ethiopian Renaissance Dam, partly built and financed by China, is now Africa’s largest, at 5,000+ MW, potentially transforming access to electricity for millions (13:22, 14:25).
• China’s Infrastructure Diplomacy:
  • In Africa: Eleven of 13 turbines made by Chinese companies; $1.2 billion in Chinese loans (14:25).
  • Across the Global South: Chinese influence is pervasive—from telecom networks in Nigeria (Transhan holding 50% share) to mobile payment apps (PalmPay, Opay), China’s role as infrastructure and consumer tech supplier is key (14:25–17:00).
• Trade Shift:
  • China’s exports to the Global South now exceed those to the U.S. and Europe combined (17:00).
  • In August, U.S. exports fell 33%, African exports rose 26% (18:48, 21:06).

Notable Quotes & Moments:

• “When you engage with the US you get a lecture and when you engage with China, you get an airport.” – James King, quoting Larry Summers (22:43)
• “China exports more than 50% more to the countries of the Global south than it exports to the United States and Western Europe combined. So this is really a tectonic shift in how the world works.” – James King (17:00)

Macro Takeaways:

• The Global South is rapidly becoming China’s core trading partner, “holding up half the sky.” By 2025, the share may top 50% of Chinese exports (21:06, 31:58 prediction).
• Western media and analysis often miss this paradigm shift due to lack of coverage and attention (18:48).

Complexities:

• Margins are thinner in developing markets.
• Some of the export data reflects rerouted goods via Southeast Asia as “trade workaround” against Western tariffs (22:09).

III. The 'Labubu Economy': China's Pop Culture Export

Segment Start: 23:58

Main Discussion Points:

• What is Labubu?: A plushie from Pop Mart’s “The Monsters” franchise, based on a mythological creature, now a top status symbol, with fans including Rihanna and David Beckham (23:58).
• Collectibles Craze: The mystery “blind box” model, echoing Japanese vending machines, fuels “mania” as people hunt for rare editions (25:51).
• Pop Mart’s Global Triumph:
  • Pop Mart’s stock is up 470% YoY; founder Wang Ning is now a “multi, multi billionaire” (28:58, 30:10).
  • Labubu vending machines are everywhere in China—and now in cities like London (26:33).
  • Pop Mart exemplifies China’s ability to scale quickly, both in manufacturing and cultural trends.

Notable Quotes & Moments:

• “We're really living in a Labubu economy.” – Alice Han (26:35)
• “Labubu to me is the first big craze that's come out of China involving something physical.” – James King, after tracing Chinese export history (27:29)
• “More than half [of people] do not assume that it's Chinese...It’s like TikTok, where China may be developing these companies that are no longer seen as Chinese.” – Alice Han (28:58)

Larger Implications:

• These trends reflect the “de-sinification” of Chinese brands, as companies relocate HQs or make branding ambiguous (28:58).
• The cultural export wave (Labubu, TikTok, Shein) signals a new dimension of Chinese influence beyond low-cost goods.

IV. Predictions for China’s Near Future

Segment Start: 31:48

James King’s Prediction:

• “China's exports to the Global South will for the first time ever this year form more than half of all Chinese exports. This speaks to the west being ‘de-centered’ from the global order.” (31:58)

Alice Han’s Prediction:

• “Trump will go to Beijing soon—maybe after the Korea APEC summit. The Chinese will roll out the red carpet.” (33:15)
• Han speculates this could lead to “some kind of trade deal,” potentially resetting U.S.-China relations (33:21).

Notable Quote:

• “When I was in Beijing...the Chinese feel as though they know how to play him [Trump] by offering him symbolic gestures.” – Alice Han (33:38)
• “If I'm wrong, I'll owe you a bottle of whiskey.” – Alice Han (33:15, 34:57)

V. Memorable Quotes Roundup

• “No one is talking about tariffs or trade. Everyone's talking about the stock market for the first time.” – Alice Han (02:53)
• “When you engage with the US you get a lecture and when you engage with China, you get an airport.” – James King quoting Larry Summers (22:43)
• “We're really living in a Labubu economy.” – Alice Han (26:35)
• “Labubu to me is the first big craze that's come out of China involving something physical.” – James King (27:29)

Key Timestamps

• 00:56 – Opening of main show, lipstick/Labubu economy intro
• 02:14 – Details on China’s stock rally, “slow and steady bull”
• 04:46 – The rising role of institutional investors in China
• 10:44 – “Choke point” sectors: semiconductors, AI, and biotech boom
• 13:22 – Ethiopia's Grand Renaissance Dam as a symbol of China's global influence
• 14:25–17:00 – Telecom/tech infrastructure expansion in Africa
• 18:48 – China's trade shift toward Global South, export statistics
• 22:43 – Larry Summers quote on US vs China approach
• 23:58 – Labubu fever and Chinese pop culture exports
• 28:58 – Labubu’s ambiguous origins and Pop Mart’s surging valuation
• 31:48 – Predictions: China’s trade direction and Trump’s potential Beijing visit

Tone & Language

The conversation is informed, globally-minded, pragmatic, and occasionally playful ("If I'm wrong, I'll owe you a bottle of whiskey"). While analytical, both hosts share anecdotes and ground-level observations from their travels, keeping the discussion accessible and lively.

For listeners who missed the episode:
Expect a rich overview of financial trends, global trade tectonics, and the unexpected cultural might of a Chinese plush toy. The episode dissects the stories behind the data, peppering in historical flashbacks and predictions for China’s next act on the world stage.