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I discussed with Richard Koo Japan’s balance sheet recession in the 90s and how may the experience be applied to managing Chinese property deflation today. (This is the first half of our dialogue)

Great to welcome @LGE_Global Group Chairman Kwang-mo Koo and LG leaders to NVIDIA as we enter the next chapter of our collaboration. Together, we’re expanding our work across AI infrastructure, physical AI and robotics. We’re excited about what our teams can build together.

The Singularity needs new terms. chīkǔpilled adj. /chee-koo-pild/ Convinced that the path to AI supremacy is to eat bitterness long enough to learn the Bitter Lesson. China has a cultural concept, chī kǔ (吃苦): “eat bitterness.” Endure hardship now to prevail later. AI has Sutton’s Bitter Lesson: general methods that scale with computation eventually beat hand-crafted human ingenuity. Being Bitter-Lesson-pilled means believing that scale wins. Being chīkǔpilled means being willing to endure the cost, repetition, failure, and grind required to make scale win. Less cleverness, more compute. Less impatience, more iteration. Eat bitterness. Scale compute. Win later.

The repeated chant "Mama-se, mama-sa, ma-ma-koo-sa" featured in "Wanna Be Startin' Somethin'" from "Thriller" was borrowed from Cameroonian musician Manu Dibango's 1972 song "Soul Makossa." Dibango later filed a lawsuit over the uncredited use, which was eventually settled outside of court. It's a lesser-known legal chapter connected to one of "Thriller's" most recognizable tracks, showing that even the biggest-selling album of all time had its own behind-the-scenes legal drama.

🇹🇼🇺🇸 The “English Teachers” Beijing Never Wanted You to Meet: Taiwan Just Lifted the Curtain Defense Minister Wellington Koo confirms what the CCP has spent years trying to deny. U.S. troops are already on the island, and more are coming. For years they moved through Taiwan’s bases without name tags, logged as “American English teachers.” Their real curriculum was combat. On Friday, Taipei stopped pretending. In a rare on-record briefing, Defense Minister Wellington Koo told a small group of reporters that U.S.-Taiwan military cooperation “is far closer than you might imagine.” The timing was deliberate. Taiwan’s largest annual war games, Han Kuang 42, kicked off Wednesday and run through August 14. The Wall Street Journal first exposed the quiet American training presence in 2021. Koo has now confirmed it and previewed a scale-up. “A lot more ‘American English teachers’ will be showing up where they need to be,” he said. “But you won’t be able to spot them everywhere they operate.” Two senior officers reinforced the message on the record. Maj. Gen. Sun Li-fang, the Ministry of National Defense spokesman, said the Americans “share a lot of real combat experience with us.” Lt. Gen. Huang Wen-chi, who leads the Department of Strategic Planning, confirmed Taiwanese units have been reshaped by realistic combat training with U.S. personnel. The message is aimed squarely at Zhongnanhai. Taiwanese authorities logged 85 Chinese coast guard sightings in May and June alone, a nearly 90 percent jump against the same period last year, with two vessels probing waters east of Taiwan on Friday, far from the mainland. The People’s Republic no longer bothers to disguise that its coast guard operates as a naval auxiliary rehearsing blockade. Taipei’s response is transparency as deterrence. The American Institute in Taiwan (AIT), Washington’s de facto embassy in Taipei, released a photograph of U.S. and Taiwanese coast guard cutters sailing in tandem, a public handshake the two sides once buried. Koo added a clarifying line that Beijing should study carefully. Taiwan’s war plan does not assume American intervention. That is not resignation. That is a democracy telling the CCP it will fight, and the trainers teaching it how are already inside the wire. ACI — Aric Chen | Insights

In the second half of this dialogue, I debated with Koo on the spot the solution proposed in Koo's (Richard Koo / 辜朝明) book regarding how to address trade protectionism and global trade imbalances. Simply put, China's export advantage does not stem solely from an undervalued exchange rate. Therefore, even a substantial appreciation of the renminbi would not eliminate this advantage. And look, this year the renminbi has clearly appreciated, yet the trade surplus continues to hit record historical highs.