China has anticipated the problems arising decades ago and has taken steps to protect itself from USA blockades over energy flows China has prepared itself against energy shortages and building energy infrastructures unseen anywhere else in the world. Building of stockpiling infrastructures for oil are being built fast and furious, while oil exploration by the Chinese is entering untouched territory with Chinese oil explorers investing in deeper oil wells being sunk.
The biggest move by China must be its migration to renewables, that will lessen China's dependence on oil and coal. China dived headlong into solar and wind energy harvesting to complement its reliance on fossil fuel, which today is levelling off, while the USA and the West laughed and now discovered they had balls caught in seaweeds today.
China took the adoption of EVs by the horns, building more than 16.7 million charging points throughout the country, with the Government subsidizing the adoption of EV purchases and phasing out internal combustion vehicles. This is no half-hearted move and no chickening out in the face of all the sanctions by the West over the adoption of Chinese EVs. If the USA and Europeans refused to buy Chinese EVs, the Global South will gladly oblige adopting the cheaper Chinese EVs. The market will dictate whether Chinese EVs will grow and survive or stagnate. Sales in China alone will keep EV makers in China busy enough, with China the biggest growing vehicle market in the world.
Significantly, Singapore's transport operators are buying BYD buses by the thousands, which tells us who is laughing all the way to the bank. The mass transport sector is no more the playground of Mercedes, Volvo and Leyland anymore. If it works in Singapore, expect others to follow.
Now, we are starting to see the nakedness of the USA with the relentless AI and data center buildup, with insufficient energy generating logistics to cope with massive demands. Not having done the sums first before diving headlong into building AI and data center infrastructures all over the USA is coming back to haunt AI investors. Whether a big collapse is coming is left to be seen. But let us wait for the tide to go out to see the fun.
Anonymous
3 comments:
As in all matters, Trump is probably again using his infamous Art of the Deal', creating a tsunami over AI and data centers that was, and is, supposed to scare China out of the competition. There is a furious circle of investing by all the big USA technology giants into each other, now ongoing, to keep the scam going. That was always the first big overwhelming step trying to clear the deck.
Next step will be hyping up the AI scam that many are now saying, including Eli the Computer Guy. This is the second step of Trump's 'Art of the Deal' to make China shiver in its pants. Perhaps Trump has forgotten already that China holds the cards in cheap energy, rare earth supplies, has cornered all the essential raw materials around the world. Xi will be laughing and rubbing his hands in glee and urging Trump to 'dig baby dig' a bigger hole to swallow up all the money invested into a big black hole.
As the AI scam unravel, which is coming soon, lots of firefighting will ensue, but any admission of defeat is not going to happen. The spin will always be that the USA is coping very well with the rare earth and energy sector shortages, although those outside Washington would choose to differ. Not necessary to hold our breath regarding what the narrative will be but suffice to say it will be painted as rosy as always.
The final step, which is to come later, just before the big AI collapse, will be a declaration of a big win, another 'mission accomplished' moment. Sit tight and wait for it as it is sure to come.
The world's fastest electric car, faster than any ICE supercar, the Xiaomi SU7 Ultra, costs less than US$80,000. The consumer model, SU7 that can outrun a Ferrari, costs on US$15,000. Why would anyone want to spend millions for ICE cars with performance no better than EVs and at a fraction of the cost?
This principle applies to Trump's AI scam. Chinese AI apps, running on a fraction of the cost of American AI apps that need to be supported by chip stacks that cost hundreds of billions, and performing just as great if not better with Chinese chips, the scam is a big yawn.
There is no justification to spend hundreds of billions when there is no usage to charge users to pay for the costs. It is a big loss proposition from the word go. Trump's biggest scam waiting to blow up.
China has already killed it with open source and minimal cost AIs like DeepSeek that can do the job and even better in many ways.
It is 2008 all over again, but much worse. China is not going to lend a hand this time. China is only going to lend a hand to push the USA underwater. Once bitten twice shy after getting bitten by a venomous snake despite helping it in 2008.
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