Erik TorenbergGeneral Partner, Andreessen Horowitz

😲 Communist China's SHOCKING embrace of capitalism! 🇨🇳

8 Apr 2025 · 1 min

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In this monologue, the speaker highlights the paradox of China—longest‑lasting communist state—actively championing capitalist practices. He notes Chinese leaders meeting CEOs and urging more international business, pointing to the Ho Chi Minh Stock Exchange as a striking symbol of communist heroes being commemorated through market institutions. The speaker argues that this reflects the effectiveness of trade: while not advocating fully free trade, he emphasizes that countries benefit from importing needed goods, exporting what they produce, and allowing specialization. He also cautions that nations should retain control over critical industries, even if short‑term economics tempt off‑shoring.

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So it is kind of funny that the, the ruler of the longest lasting, I believe, communist ruled state is this global champion of capitalism who's meeting with CEOs and telling them, please continue doing more business, especially business with other countries. They've, they've come a long way since Mao. I like that. It's just one of those funny things. It's like the fact that there is an institution called the Ho Chi Minh Stock Exchange. I think it's just hysterical. I think it is, it is this total victory for the idea of capitalism that we have these communist insurgent war heroes and we memorialize them by naming a stock exchange after them. And I guess, you know, it is a testament to just the fact that trade works. Does not necessarily have to be completely free trade, but just a system where countries can import some of the things that they need. They manufacture things the rest of the world wants. Everyone is able to specialize a bit and ideally a system where countries do choose to retain some control over their futures. They do choose to keep some critical industries onshore, even if there's a temporary economic case for moving them offshore.