The Case for Making Up with China, and Which Car Company Is Winning the Energy Crisis?

Scott Galloway weighs in on China's rise as a global superpower, identifies the companies best positioned to win as oil prices drive an EV boom, and explains why cities — for all their opportunity — are the loneliest places on earth. Want to be featured in a future episode? Send a voice recording to [email protected], or drop your question in the r/ScottGalloway subreddit. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Speaker names marked ? are inferred from speaking time and the show’s known hosts — they are not voice-verified.

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• 1:36Scott Galloway?

  Welcome to Office Hours with Prof G. This is the part of the show where we answer questions about business, big tech, entrepreneurship, and whatever else is on your mind. If you'd like to submit a question for next time, you can send a voice recording to [email protected]. Again, that's [email protected]. Or post your question on the Scott Galloway subreddit, and we just might feature it in our next episode. Question number one. Our first question comes from simple on Reddit. They say, "You have an entire podcast about China, but we don't hear you speak about China too often. What are your thoughts on China closing the gap as a global superpower? General thoughts about the progress in technology, manufacturing, green energy, military capabilities, economic positioning and infrastructure growth? Where do you see the China and the US-China relationship ending up in a few years?"

• 2:17Scott Galloway?

  Phew, I need a bigger boat. So China, China isn't rising anymore. It's risen. You know, they're here. They've arrived. The framing of China as emerging is outdated. At Davos most recently, in February this year, the World Economic Forum noted that China is no longer, oh, it was in January, and China is no longer asking the world to believe in its future potential. It's asking the world to adjust to what it's already become. It's decided, look, potentially we're the superpower now. And now more people globally trust China, or believe China is a force of good in the world versus the US, which is more of an indictment on the US than it is a plus statement for China. China is the first middle-income country to crack the top 10 most innovative economies globally, ranked 10th in the 2025 Global Innovation

• 3:02Scott Galloway?

  Index ahead of Germany, Japan and France, according to the LSE Business Review. To achieve this, had GDP per capita of around $13,000, which is roughly 1/6 of America's GDP per capita. No country's ever done that before. So in technology and manufacturing, it's not really a race anymore. DeepSeek demonstrated two things, that China can match Frontier AI at a fraction of the US training costs, and chip export controls would not stall them. That was sort of a, I'm gonna call it, an Apollo moment or a Spandak moment. Made in China 2025, it's the policy the US laughed at, quietly delivered. China now dominates

• 3:44Scott Galloway?

  EVs, batteries, solar, wind, robotics. Look at what's going on in Iran. It's all about fucking energy. The flow of energy is the flow of power. And if you can strike the flow of energy, you have power. And China said, "We don't want to be dependent upon the Gulf or the US or other oil exporting nations, and we're gonna make..." You know, they lead in EVs. They lead in solar panel production. They are, they've brought online more nuclear power plant capacity in the last 10 years than we ever brought on. They produced- More solar last year than we've ever produced. China now files more generative AI patents annually than all other economies combined. So think about that. And they count for 41% of the world's industrial robots, more than 70% of high speed rail, and more than 75% of batteries sold globally.

• 4:28Scott Galloway?

  Jesus. The real mode isn't any single technology. It's their ability to move from design to scale to deployment. And it's remarkably faster than any of its peers. So they regulate for speed. We regulate for control. Some of their key advantages. China doesn't need to match US economic scale to win. It controls choke points. 94% of rare earth magnets, critical to US defenses and tech manufacturing, they control. This exposes sort of, you know, what is arguably a real flaw in Trump's strategy. The US is fighting with broad economic pressure while China has already secured the specific pressure points that actually matter. And then China is embracing something that we're expunging or getting rid of, and that

• 5:13Scott Galloway?

  is an investment in soft power. And it makes sense. A global Oxford study found that Trump's America First posture is actively repelling countries toward Beijing. His disavowal of the liberal international order may have given people license to build stronger ties with Beijing. They're seen as the more reliable partner right now, which is scary. According to Pew, 41% of people globally, and I mentioned this before, now see China as the world's leading economy versus 39% for the US, traumatic shit from just two years ago. And it's getting worse. The Iran war is handing China more diplomatic capital. The US is pulled back into the Middle East while Beijing positions itself as the stable, peaceful alternative. Some of the counterarguments, you know, it's definitely not game over. China's economy is lopsided.

• 5:58Scott Galloway?

  Its exports are booming, but consumer spending is pulling back. The property sector is depressed and over leveraged. The IMF has warned that export led model is having its limits. Demographics are kind of a...

• 6:12Scott Galloway?

  If you listen to Peter Zeihan would say it's a crisis. Aging population, cratering birth rate, same structural drag that stalled Japan. And then involution and the feeling among young Chinese that hard work won't be rewarded is driving real disillusionment. Youth unemployment is a growing problem. And she's recent purge of the top military commander raises concerns about loyalty, institutional competence, and how secure he actually is. Bloomberg noted a tale of two Chinas, empty streets and economic anxiety alongside cutting edge autonomous factories. So where is China? I personally believe we should kiss and make up with China. 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 thought of US-China relations.

• 6:57Scott Galloway?

  We have IP and innovation and capital formation. They have the world's greatest supply chain and manufacturing capabilities. So I think working together, you just bring down the cost of everything everyone buys around the world by three 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 shit back to us at 40 to 60 cents on the dollar. So really thoughtful, strategic trade policy, stop all the finger pointing. Can you imagine how powerful we'd be if the Chinese and the US decided they had shared interests in militarily or kinetically and diplomatically tried to coordinate? I mean, that would just be staggering.

• 7:41Scott Galloway?

  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. And while we should probably, in my view, maintain our military leadership, 700 bases overseas, nobody can deliver violence like us. I don't think China has an operating aircraft carrier. If they do, it doesn't have the capability. I think they have two overseas air bases or military bases anyways. I think there's reason to try and do a better job of getting along. 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's definitely seems a little bit more, I don't know, sketchy, if you will.

• 8:21Scott Galloway?

  And they, their SEC and their regulation is for control, all of ours is for growth. But 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. And if you look at what's happening, I think we're probably ceding power to China in the Iranian conflict because they are, I mean, they're dependent upon energy, but they've built a lot of their own energy. They're seen as a 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.

• 9:06Scott Galloway?

  They, they have 50-year plans. We, we have five-month plans. They're high-speed rail. You know, they're able to, a third of air traffic is now 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 fucking unbelievable. We don't have a high-speed rail system in the United States. It's just unbelievable. But we have entrenched interests that get in the way. At the same time, you know, our tech sector's still dominant, we still take more risks, we still have much better brands, much more creativity. 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. Thanks for the question.

• 9:53Scott Galloway?

  Question number two comes from previousgolf95-41 on Reddit. They say, "What company is the next Subaru? Before the 70s oil crisis, no American had ever heard of this Japanese carmaker. Suddenly, Americans need cheap, small, fuel-efficient cars, and Subaru boomed along with Toyota, Honda, Datsun, and others. What company is best positioned to boom during the current oil crisis? Will BYD and other Chinese EV companies dominate?" So you stole my thunder. I was gonna say absolutely BYD. Energy crises can change driving habits permanently. A crisis is a terrible thing to waste. It brings on innovation. In 1973, Americans needed small and cheap. And today, according to Reuters, the experience of extreme supply shortages and

• 10:33Scott Galloway?

  higher petrol prices is obviously pushing people towards or to reconsider EVs. The data is already showing that Tesla competitors tripled in France in March, 9,500 units, up 203% year-on-year or Tesla competitor sales. UK monthly EV sales hit a record, 86,000 units, up 24% year-on-year. In Australia, Combank recorded a 162% spike in new EV loan volumes in March compared to the February weekly average, starting on exactly March 1st, the day the Iran crisis hit fuel markets. One of the silver linings here, Mike, frankly, is that it was probably hard to get a lot of alternative energy startups funded with $60 a barrel oil. It's going to be a lot easier with $100 oil.

• 11:17Scott Galloway?

  EVs are also just more attractive now. Batteries now cost half what they did when the last time oil topped $100 after Russia invaded Ukraine in 2022. In the UK, HSBC estimates that owning an electric Renault 5 over four years costs about 7,000 pounds less than a comparable diesel VW. So what could be the next Subaru? You answered it, BYD. Maybe Geely, who accounted for nearly a quarter of all EVs sold globally in Q4 2025. Geely shares are up almost 50% since the beginning of the Iran war, and BYD showrooms across Southeast Asia are packed. One Manila dealer told Reuters he saw a month's worth of orders in just two weeks.

• 12:00Scott Galloway?

  According to Prof G Media's own analyst, Alice Hahn from China Decode, "With the war continuing to rage in Iran, China's EV industry is likely to emerge as a winner. Surging oil prices will give consumers even more incentive to buy the vehicles." "I've driven in both Teslas and BYDs," said Alice. "From my standpoint, BYD has the edge. In fact, it's probably a no-brainer, given the cost, style, energy efficiency, and intuitive operating system." Tesla could be the accidental winner. And then in North America and BYD is the intentional winner globally. Tesla has no tariff while in the US and high gas prices and free advertising, but it lost almost half its European market share in 2025 due to most political baggage.

• 12:44Scott Galloway?

  And US sales are still declining down 8% in March. The European rebound is real but partial. Western automakers bet against EVs at the wrong time. Ford, GM, Stellantis and Honda collectively wrote off 70 billion in EV investments when demand slowed a few years ago. She's like, just can't get it right. When they exit, then the war happens and EVs go crazy. They kept EVs into portfolios, but deprioritized them. Now the market is moving again and they're behind. So what's the danger of oil prices fall? Some of the urgency fades, but history suggests the memory of scarcity outlasts the crisis itself. That's interesting. The 1973 shock didn't just sell Subarus, it reshaped energy policy for decades. This could do the same for EVs. I would argue that the better analogy is not Subaru but Honda. I've been in a BYD in Brazil.

• 13:29Scott Galloway?

  I, the way I saw it is it's like 70 or 80% of a Tesla for 40% of the price. I just, I think it's the Old Navy or the Southwest of EVs. And those companies are the fastest zero to billion dollar retailer and airline respectively in history. I think BYDs, I mean, you can hold them from your shores, but eventually that just means you lose all share internationally. And at some point you have to take them in and you're behind because you haven't had the forces of competition keeping you kind of innovative. Also, I think Elon Musk is basically, I don't want to say given up on Tesla, but is focused on SpaceX and X. And I think the Tesla lineup, quite frankly, just feels a little bit stale. All right. We'll be right back after a quick break.

• 14:15Scott Galloway?

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• 16:26Scott Galloway?

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• 17:35Scott Galloway?

  Welcome back. Our last question comes from JobMiserable1017 on Reddit. "Hi Scott, I'm an urban planning student, and I'm wondering if the way cities are built in America, the streets, buildings, and public access affects the social and emotional lives of young men. Do you think suburbia, car commuter culture, or just overall design and feel of the urban fabric play a role in the crisis we often talk about? If so, we'd love to hear your thoughts." I'm sure it does, but the answer is I don't have a thoughtful answer here. So, one piece of data the team got was that every 10 minutes of commuting reduces all forms of social capital by 10%. If you're spending all your time in a car, you don't have time to join sports leagues or go to church or go to bars. I think that there's a really weird dynamic,

• 18:17Scott Galloway?

  and that is cities offer so much opportunity. Two-thirds of all economic growth is going to take place in 20 cities globally. And the aesthetic draw, the kind of fabulous draw, I think is a stronger pull for young women than young men. That's a sexist thing to say, but I'm sticking to it. And there's data that shows men have a tendency, or young men have a tendency, to stay on the farm. A lot of them don't even live out of their house. One in three men under the age of 25 are still living at home. And women head to cities. The result is an imbalance, and there's usually more women than men in cities. And also, it is so expensive to be in a city that...

• 18:56Scott Galloway?

  Your currency as a man is even more dependent upon your ability to make a living such that you can date. Like, I imagine dating, and this is a bit of a stereotype, in a mid-sized city or a rural area is like, okay, there's not a lot to do. Let's go to the high school football game, or let's go see a movie. And it's not crazy fucking expensive, and maybe you can afford a home, and you're quote unquote a viable mate. To be a viable mate as a man in a city means you just gotta make a shit ton of money. And there'll be a bunch of, you know, Brooklyn sandaled wokeness that, oh, men don't need to make a lot of money. That's not only on criteria, bullshit. In a big city, you're just not viable as a mate, as a man, if you're not clocking it, unless you're smart enough to be born to rich parents. So more women in cities than men, and the men that are there are, tend to be making

• 19:40Scott Galloway?

  a very good living, which helps them engage in Porsche polygamy, which means that they don't have incentive to create long-term relationships. So a lot of the women can't find emotionally available or economically viable men. And, you know, cities are, cities are optimized, well, I'm talking about New York. Cities are optimized for two people, and this can upset people, I'm gonna say it anyways. Rich men and hot women, and for everyone else, it's a soul-crushing experience. And I realize that's a broad generalization, but it is the ultimate in capitalism, it's the ultimate in consumption. So what happens? If you're just a nice dude making a good living, you're really fucking lonely. If you're a nice woman who's attractive and making a good living, you're really fucking lonely. So I find that cities are the most crowded places in the world with the most

• 20:23Scott Galloway?

  lonely people. At the same time, if you want to get ahead and have influence, you know, gotta get to the city, because the reason I spend so much time in New York and LA is, this morning, I do four podcasts, I have a meeting with a guy about this great documentarian about turning my last book into a documentary, and then I'm going on the Andrew Huberman podcast. When I go to New York, I'll do, you know, I'll do like five meetings every goddamn, I mean, it's just so productive. You bump into some, and then every night, I'll go to something cool or a new members' club. The density and collision of capital, creativity, and cool is just extraordinary. You're gonna make more progress if you can figure out a way to survive in a city in three years than you might make in a rural area in 10 years. So.

• 21:04Scott Galloway?

  But yeah, I do think in a strange way, it creates a lot of loneliness. So what is the answer? I don't know, more affordable housing, better infrastructure and transportation such that people can live in peripheral areas that aren't as expensive and still get into the city. But effectively, I would argue, New York right now is Elysium. I don't think, I think it's in a golden age. You never realize when you're in a golden age. You realize it in retrospect. We are in a golden age in New York. New restaurants shed a skin from COVID. I find it clean. I don't find that many homeless in Manhattan. A members' club opening every three weeks, incredible events. It's just amazing. The problem is there's basically a giant velvet rope around Manhattan and that is, it's just so goddamn expensive unless you have rich parents or you're extraordinary,

• 21:48Scott Galloway?

  you're in tech or finance, you're making a living. When I first moved to New York, you could kind of dance between the raindrops. I had friends who were artists, musicians, and it wasn't easy, but they could figure it out. And they'd live downtown and sure it was more dangerous, but they could find a loft somewhere and share it with two other people. My first apartment on the Upper West Side, I shared with two guys. It was 1,900 bucks, 633 bucks a person. We took the subway everywhere, you know? It was doable. Now, you're a young person, unless you have rich parents, you're making a shit ton of money in tech or finance, there's just no fucking way. No way. Ubers are crazy expensive. Not that you can't take the subway, which I still think is the best transportation infrastructure in the world, but you know, try going out and having a good time and meeting people. You're talking about 300, 400 bucks.

• 22:31Scott Galloway?

  I mean, it's just, anyways, higher pay, more men, you know, elevated minimum wage, more low income housing, better infrastructure to help people commute in and out of work. No one has a birthright to live in a city, but I do think it's, I do think it's gotten to the point where we want to create more economic incentives for low, for, I want to call it low income, affordable housing in the US. And also, quite frankly, more men just need to realize the agency they have, have a plan, get their shit together and take that leap and move out of their parents' house and move to a city and just try and do what a lot of young people do and that is figure out a way to make it. But yeah, there's something about cities being incredibly crowded and at the same time, being incredibly lonely. See above, I don't know. I don't know, but I very much appreciate the question.

• 23:16Scott Galloway?

  That's all for this episode. If you'd like to submit a question, please email a voice recording to [email protected]. That's [email protected]. Or if you prefer to ask on Reddit, just post your question on the Scott Galloway subreddit and we just might feature it in an upcoming episode.

• 23:33Scott Galloway?

  This episode was produced by Jennifer Sanchez and Laura Janer. Tammy Rique is our social producer. Brad Williams is our editor and Drew Burrows is our technical director. Thank you for listening to the Prop G Pod from Prop G Media.

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