London Real Dr. Yasheng Huang - MIT Economist Warns: China's Miracle Is Finished — The Collapse No One Wants to Admit
Feb 4, 2026
Dr. Yasheng Huang, an MIT economist and China scholar, warns that China’s economic miracle is over. He discusses stalled growth, debt and demographic traps. He also covers political purges, risks of invading Taiwan, and how China scaled AI into products. The conversation flags global consequences and rising insecurity in China’s elite.
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Taiwan Invasion Would Trigger Economic Rupture
- Yasheng Huang warns that invading Taiwan would destroy China's economic ties with Europe and the US.
- He frames such an invasion as a 'sheer disaster' that would halt business relationships and global integration.
Political Paranoia And Strange Russia Affinity
- Huang finds China's political leadership unusually insecure and paranoid, citing unprecedented purges in the military.
- He highlights a surprising political softness toward Russia despite historical brutality from Moscow toward China.
China Excels At Scaling AI Commercially
- Huang acknowledges China didn't invent large language models but excels at scaling them into commercial products.
- He urges humility from the US in recognizing where it has fallen short in the AI race.