We wrote about it in The future is not America but China:
Interview taken from Youtube :
“We are witnessing in real time the biggest shift in global economic power.
While America debates tariffs, summons its own Fed Chairman for a hearing and spends $380 billion on AI infrastructure with no measurable returns..
China has just implemented its most aggressive industrial strategy since the Marshall Plan.
This week alone, five Chinese artificial intelligence companies – Zhipu, ByteDance, Alibaba, Moonshot and DeepSeek – simultaneously released or announced major updates to their models during the Spring Festival.
A RAND report published last month confirmed that Chinese AI models operate at between one-sixth and one-quarter the cost of comparable American systems.
One sixth of the cost.
Surveys show that the vast majority of US companies investing in AI report ‘no change’ in productivity, decision quality or customer satisfaction.
America burns cash. China builds products.
But AI is only one front.
The ‘Four Dragons’ – Moore Threads, MetaX, Biren, Enflame – have all gone public or filed for IPOs in the last two months.
Huawei is doubling production of its flagship Ascend chip to 600,000 units this year and has outlined a three-year roadmap to overtake Nvidia.
According to Bernstein, Nvidia’s market share in China could fall from 40% to 8% due to current export restrictions, while Huawei’s could rise to 50%.
Beijing is mobilising USD 70 billion in chip incentives and has mandated state-owned telecoms to replace AMD and Intel by 2027.
They are not competing with our technology stack. They are replacing it.
Now let’s look at energy.
In 2025, China invested $1 trillion in clean energy: four times what it spent on fossil fuels. Clean energy contributed more than a third of GDP growth last year.
It produces one terawatt of solar panel capacity each year. Over 70% of global electric vehicle production is Chinese. Almost half of the new cars sold in China are electric.
It can power its AI data centres with cheap, home-built renewable energy.
Meanwhile, there is debate in the US about whether or not to maintain incentives for wind power.
The part that should worry any investor exposed to the dollar:
China’s central bank has been buying gold for 15 consecutive months.
In January, reserves reached $369.6 billion, up $51 billion in a single month.
According to the World Gold Council, actual reserves could be twice as high as declared.
The Shanghai Gold Exchange is expanding renminbi-denominated contracts abroad. Yuan-based trade is growing with Saudi Arabia, Brazil and Indonesia.
They are not just accumulating gold. They are building the infrastructure to challenge the way global commodities are priced.
And the Chinese trading machine? Record $3.770 trillion in exports last year.
Surplus of $1,190 billion: the highest ever recorded by any country.
But with a completely redefined direction.
Exports to America fell by 28.6%. Those to Africa increased by 27.5%. ASEAN 8.2%.
Goldman has revised upwards China’s growth forecast for 2026 to 4.8%.
Let’s add up the factors:
– AI at a fraction of the cost
– A parallel chip ecosystem
– $1 trillion a year in clean energy
– 15 months of gold purchases
– A record trade surplus geared towards the Global South
The 15th Five-Year Plan covers quantum computing, 6G, hydrogen and biomedicine.
We are talking about a country that installed 277 gigawatts of solar in a single year, while we were discussing tax credits.
My allocation:
Gold and precious metals remain a core component. Chinese purchases create a structural ‘floor’ to prices, and they are not slowing down.
Valuations of the ‘Magnificent 7’ look increasingly tense if a competitor can develop comparable AI at infinitely lower cost.
Energy stocks remain attractive: transition is measured in decades, not quarters.
China is building the future.
America, unfortunately, seems to be merely discussing it ‘.
In January Huanghad been more diplomatic with the US : Huang (Nvidia): ‘US and China the relationship of the century. On chips we will depend on Taiwan for 50 years’
The top manager’s interview with Time. “Deep interdependence between the two giants, to think that Beijing needs foreign technology to build its armaments is madness”. On Trump: “Very smart, a great listener.”
