The Future of Technology is coming from... China?!

The shocking trend that you're supposed to pretend isn't happening

The biggest tech news this year has most definitely been AI, right?

You can’t escape it. It’s everywhere.

What’s more, every day brings yet another announcement of a “bold new investment” of billions of dollars in even MORE AI!

So, it must be true, yes?

Well, not so fast. In fact, the biggest event in tech this year did not come from AI at all. It didn’t even come from the Western world!

The most radical technology event this year was the beginnings of a massive shift in the core of high-tech from West... to East.

The AI Bubble

First of all, we need to understand that the AI being pushed in the West is one giant bubble. But don’t take my word for it.

Global Head of FX Research at Deutsche Bank, one George Saravelos, said the USA would be close to a recession this year if Big Tech were not spending so heavily on building new AI data centers. He further commented:

“The bad news is that in order for the tech cycle to continue contributing to GDP growth, capital investment needs to remain parabolic. This is highly unlikely.”

A Harvard economist by the name of Jason Furman also remarked that excluding spending on technology-related infrastructure, annualized GDP growth in the first half of 2025 would be a meager 0.1%.

In other words, when you hear that OpenAI inked new deals for graphics processors and “gigawatts” of new compute power from the likes of Oracle, it sounds good. But the reality is that with annual revenue of about $10B, OpenAI can’t possibly afford the literally hundreds of billions of dollars required for all this ‘stuff’.

The AI hype has become so powerful that companies and investors are betting on near-impossible real financial growth in order to fund... well, that same growth! If that makes absolutely no sense to you, don’t worry. That’s actually a good sign that you haven’t consumed the AI KoolAid.

This is why many (sane) investors and economists keep warning about the ‘AI bubble’. It’s worse - way worse - than the dotcom bubble at the turn of the century.

A Dotcom Detour

Remember the dotcom bubble? All you needed to do was launch a web site to sell something - anything, really - and you too could become an overnight millionaire.

We were reassured by many ‘experts’ that we were then moving into something called The Information Economy. That meant it was okay we didn’t actually manufacture much anymore. The core of the economy was our supremely powerful minds!

Information itself had become a commodity worth a fortune, so all we had to do was sit back, be smurt, let everyone else do all the hard work of actually building things, and enjoy the ride to the effortless Good Life!

Ah, those were the days...

And then the dotcom bubble popped, reality intruded, and many people lost tons of money. Oh well.

Many people are now remarking that the AI Bubble is the same - but way bigger and even more jam-packed full of ‘crazy’.

But we’re still the best, right?

Okay, so maybe there IS an AI bubble. Maybe the hype has outpaced the reality, and we’re headed for a ‘correction’. But we’re still awesome in tech... right?

Well, sort of. Things are changing, and they’re changing FAST.

We all know Intel has struggled mightily in recent years. Beginning around the 10th generation of Intel processors, AMD started surpassing Intel in many ways.

Today, we’re on the 15th generation of chips, and Intel still kind of sucks. But you probably heard about all of that already.

What you didn’t hear - because hardly anyone will report on it - is that China is gaining on Intel at about Warp 9.99999997.

A few years ago, I read an article talking about Chinese desktop processors. Not to worry, they said. China is 10 years behind us - at least! Earlier this year, I read this interesting article:

Chinese chipmaker claims new Loongson 3B6600 CPU could hit 13th-Gen Intel performance

Not to worry, though: The article assures us the Chinese are still YEARS behind. But, hang on... Didn’t I just say that 2 years ago, these same sources claimed China was 10 years behind? Now they’re only 2 years behind?!

But it gets better!

China is working on their own everything, including graphics processors. Again, we hear the same story: Don’t worry, they’re years behind us! No threat at all...

Someone better tell that to Nvidia CEO Jensen Huang, then:

Nvidia boss Jensen Huang calls China “nanoseconds behind” the US in chips, but urges Washington to ease export rules

He warned that America was up against a “formidable, innovative, hungry, fast-moving, underregulated” competitor, citing its infamous 9-9-6 culture: working 9am to 9pm, six days per week. [...]

Huang then claimed that rather than being a year or two behind the US in the areas of chip development and manufacturing, China is “nanoseconds behind us, and so we’ve got to go compete.”

Indeed! As I’ve mentioned in my videos that YouTube won’t show anyone, China funds startups to compete with each other, and the winners grow into behemoth companies practically in the blink of an eye.

This isn’t surprising. This is the same country that built thousands of kilometers of high-speed rail line faster than you can sneeze. When the Chinese do something, they really do it. Many people believe this model is fueling the rapid growth of Chinese tech, and therefore the Chinese middle class.

Heck, just hop on YouTube and search for videos of many Chinese cities. They look like some kind of futuristic version of the USA or Europe. Meanwhile, can you afford electricity or heating fuel? Yeah, me neither. But hey! We’ve got AI on the way, so there’s that...

But wait! There’s more...

AI? Try DeepSeek. It’s costs a fraction of other Western AIs, is pretty much just as good for many tasks, and is more or less open source.

Robots? Everyone knows Boston Dynamics, but we’ve never heard of the likes of Chinese robotics companies Midea and LimX. If not, don’t worry: you will. Their humanoid robots are at least as good, and appear to be better than their Western competitors (and way cheaper, again).

Cars? China is making better cars at a lower price. Just ask residents of many countries, such as Russia, Mexico, and quite a few others - especially those nations outside the Western sphere of influence. Chinese EVs are a huge threat to the likes of Tesla.

Many are even saying that the premium Chinese car brands are fancier and more reliable than even Mercedes - often at half the cost.

Speaking of cars, did you know China is working on new sodium-ion batteries? Yup:

China’s sodium-ion battery breakthrough could end the EV industry’s biggest problems

Their new batteries allegedly come at half the cost, use abundant sodium instead of lithium, are far less likely to burst into flames, resist cold weather far better, have a 5X longer lifespan, and offer the same range as Li-ion battery packs.

Guns and Butter

But It isn’t just in commercial tech that China is growing wildly. They are also soaring to new heights in military terms. China’s navy is building ships faster than Speedy Gonzalez.

Another example: Check out these two bad boys unveiled (to a tiny portion of the world, of course) in December 2024:

Surely those are fancy new American jets, right? Wrong.

You’re looking at 2 planes - tentatively dubbed the J-36 and J-50 - that are supposedly a pair of sixth-generation stealth planes Made in China. One is a heavy three-engine (!!!) bomber, and the other a smaller twin-engine fighter.

Now, call me crazy, but I’m pretty sure China didn’t steal those from the USA. I’m also fairly certain that they do not represent tech that’s “at least 10 years behind” what America’s got.

So, yeah...

I don’t love China, and I don’t hate China. China is simply China.

What I like to do is to give credit where it is due... And from where I’m sitting, it won’t be long until Chinese tech takes over everything.

I’ve BARELY even touched here on all the tech China is working on. They are quite literally going Warp 9 in any industry you can think of. And they actually have the rare earth minerals, the raw materials, an INSANE amount of production capacity, and plenty (PLENTY) of very smart engineers.

So when China says stuff like, “We’re making our own EUV chip fab equipment”, I tend to sit up and take notice.

But ultimately, we need only wait a few years in my opinion. By that time, what’s left of our increasingly ridiculous Western world will have crumbled away, and we will be more than willing to purchase even more “cheap stuff” from China.

Only this time, it will be Made in China AND Designed in China. Not much difference, as far as I’m concerned... I couldn’t care less if the CEOs of Western tech companies can no longer buy super-yachts and naughty illegal things on secret islands.

But, But... Big Data!

And as for Big Chinese Data, give me a break. Western Big Data is in bed with intel agencies (from the West). Somehow, I doubt Chinese intelligence gives a rat’s patootie what I ate for dinner or where I went yesterday. In the past 20 years, I have seen ZERO indication that China wants to rule the world, but plenty of indicators that my own native USA really, really loves being The Big Guy.

“But they’re gonna SPY ON YOU!” is exactly what our side would tell you because they don’t want to lose you as a “valuable customer”. Think about it.

In any case, the world has already gone multipolar; it’s just that some countries can’t admit that particular reality to themselves yet. Multipolar tech would be a great thing, so I really hope that Western tech companies can get their acts together, return to the real world, and get some serious design and competition going.

The success of other nations shouldn’t make us weep or cower in fear under our desks. It should inspire us all to (finally) do better again!

But who knows, maybe I’ve lost the plot? Lemme know what you think in the Comments section below!!