Yang was born in Hong Kong during British rule. His parents were both from Shanghai and later moved to Hong Kong. In 2000, when Yang was 13, his family emigrated to the United States and settled in Los Angeles, California. His aunt and grandmother were already living in the US; his parents joined them primarily to allow Yang and his brother, Roy, access to better schools. Yang enrolled at John Burroughs Middle School for eighth grade, then later attended Beverly Hills High School.
Yang graduated from the University of California, San Diego with a degree in economics in 2009. The commencement speaker at his college graduation was his future Silicon Valley showrunner and fellow UCSD alumnus Mike Judge.
Yang did his first stand-up set at 21 years old as "Lowball Jim" at the Ha Ha Comedy Club in North Hollywood, Los Angeles.

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