The rapid descent of the us to make way for China as the new hegemon was kind of a given when they reelected trump.
For decades, the United States has prided itself on being the global leader in technology. In areas like semiconductors, artificial intelligence, and advanced computing, U.S. companies like Nvidia have dominated. Nvidia produces the most advanced AI chips in the world. These chips are not just about gaming or research, they are the engines of future economies, militaries, and societies.
For the last decade, the U.S. has created a narrative that China is the enemy, so they needed to pivot, contain, surround, and sanction China. One way they did this was to ban Nvidia from selling its best chips to China. Instead, Nvidia could only sell downgraded versions.
China looked at these chips and realized they were still pretty good. Beijing told Nvidia, “Yes please, we’ll take everything!” Sales surged, and the U.S. government went ape shit and quickly reacted, telling Nvidia it could no longer sell even the downgraded chips to China — a massive blow to Nvidia given the size of the Chinese market.
China mulled it over for the last 3 years, and today, Beijing has made its move: all Chinese companies are to stop buying Nvidia chips,
forever. Instead, they will produce their own. The U.S. should be happy now — no more super-duper American chips in Chinese data centers. But the response? Washington is outraged. How dare China not buy from the US! confused yet?!?
https://i.imgur.com/V4vKqWm.pngMeanwhile, China’s new chips, like Huawei’s Ascend 950 series and Alibaba’s T-Head PPU, are not only rapidly closing the gap with Nvidia — they are set to outperform Nvidia. These domestically built chips match or surpass U.S. counterparts in key AI workloads, offer massive memory and computing power, and are more energy-efficient. Combined with China’s push for self-reliance, these developments mean the U.S. can no longer rely on restricting access to maintain dominance — the “forbidden chips” strategy may have just accelerated China’s rise.
Thanks, Biden and Trump — capitalism at its finest!
https://www.youtube.com/watch?v=rBc_NYyjxXs
China's problems are more fundamental, GDP growth has declined, and they're hemorrhaging people. Export economies cannot outgrow their consumer markets long-term, there's finite global wealth.
Can China support innovation independent of American technology, and develop a consumer market to fuel that innovation in the future? I have no idea, but they're running out of time.