6/21/2026

Never underestimate China, but ok to underestimate USA when led by clowns and D graders

The USA initially wanted to decouple from China, thinking it will bring China down to its knees, with all the rhetorics created to rally the doggies. Then they found out the hard way that the sword cuts both ways. Just to mention one or two items make a fool out of the whole decoupling idea - China's rare earth dominance and its hold over the USA agricultural sector. The USA found out that its testicles got stuck in seaweeds and find it impossible to untangle itself. So, they literally stopped talking about decoupling and adopted the derisking mantra. The USA had mastered the use of 'word salads' extremely well. But China is not easily fooled.

But trying to walk back on the decoupling idea is already too late. China is fully aware that the USA has no cards to play by decoupling from China. In fact, all the rhetorics regarding trade wars and tariffs are giving China hints that it must be self-dependent in all sectors. And the Chinese are sparing no effort and resources to help the USA to decouple from China today.

As I always say, China is chipping away relentlessly at the last bastion of USA power - its lead in high-end chips. The USA is stirring up a hornet's nest and will get bitten soon. Success for China may be slow, but the writing is on the wall. China is deadly serious about turning the tables on the USA in high- end chips. China is a patient learner, a patient planner and a patient strategist. As they say, slow and steady wins the race. The USA is overly arrogant regarding its control over the chip industry. It may soon realize that its arrogance is going to cost it dearly. The USA never really expected China to rise so rapidly over the last four decades. Never under-estimate China's revolve when it is pushed into a corner.


Anonymous
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2 comments:

  1. AnonymousJune 21, 2026 11:16 am

    Never underestimate China, but unfortunately the USA and the West clearly underestimated China. That four-decade rapid rise of China and the lifting of 800 million Chinese out of poverty should have been a lesson learnt, but arrogance gets in the way.

    The bigger problem is still trying to flog a dying horse that could not compete and expecting it to win the race. The Chinese have already won most races it entered and competed in, save for the last high-end chip and AI race. But the writing is already on the wall. The AI competition is not a sure-win race for the USA, with Chinese AI innovators coming up with comparatively cheap and competitive AI platforms that are cannibalizing the earnings of USA tech giants.

    Now there is talk about a ban on DeepSeek in the USA coming. The adoption of DeepSeek's AI open-source platform is causing huge losses for the multi-billion tech giants of the USA. They are tottering and needed the USA Government to save them by banning open-source AI from Chinese companies. I guess this is the usual modus operandi of the USA Government. Where it cannot compete, it will demonize and ban using the template 'National Security' excuse. Or enact laws to take over such companies operating in the USA, just like Tik Tok.

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  2. AnonymousJune 21, 2026 1:40 pm

    The thinking is that a dying horse can still win. How? By pulling back others in front, so it appears still in the lead. That is what I call alternative victory.

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