MFOHome About Commentary Discussions Funds The Best Resources Support Us!

Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Sign In Register

Categories

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

China Tech Shock?

DrVenture
in Other Investing
https://www.cnbc.com/2026/02/16/chinas-tech-shock-ai-monopoly-us.html

•China’s tech shock is threatening the U.S. monopoly on AI and is “moving up the value chain very rapidly,” one analyst told CNBC on Monday.

•Rory Green, TS Lombard’s chief China economist, warned that most of the world might be running on a “Chinese tech stack” within five to 10 years.

•China has rapidly caught up in the AI arms race with the Western world as it develops highly advanced models on homegrown chips.

“I think the China tech shock is just getting started. It’s not just AI, DeepSeek, and electric vehicles. China is moving up the value chain very rapidly... It’s the first time in history that an emerging market economy is at the forefront of science and technology,” Green said in a conversation with CNBC’s Steve Sedgewick and Ben Boulos."

“China is a top trade partner for most of the world, particularly in emerging and frontier economies. What happens if that repeats on tech?” Green said.

Developing economies that don’t have a national security issue with China have a choice between “low-cost China tech, Huawei, 5G batteries, solar panels, AI, probably some cheap RMB financing,” or “high-cost American and European alternative,” he said.

“For these economies, I think the choice is fairly simple, and you could see easily a world where maybe most of the world’s population is running on a Chinese tech stack in five to 10 years time,” he added."

Comments

  • sma3
    great article

    A lot of people consider China "uninvestable" ie without the rule of law etc. But who ever expected the US Government to buy a chunk of rare earth miners etc?

    I wonder how long it will be before they cancel ADRs at a stroke and prohibit foreign ownership of BABA etc?

    A shares are probably a better bet but do you think they will let KWEB, a US company continue to own them if they cancel the ADRS?

    Huawei "supposedly " is owned by it's employees.
  • DrVenture
    I don't know about the investment thesis. I am not interested in taking that sort of risk on. I do own YUMC. It spun off of YUM. I made a lot on it initially, lagging since then. Up 16% YTD. I am thinking of selling.
  • Sven
    Thanks @DrVenture. Very informative article.

    I believe @Old_Joe posted earlier on China’a approach to AI, their development of DeepSeek, and China’s use of AI versus the West. Certainly a much more reasonable investment than the Mag 7 companies. Will add more later.
  • CrashCrash
    @sma3 That's where I'm at: China is uninvestable due to their political and military and cyber shenanigans. Never thought the U.S.A. would fall so far, to become a country led by stooges, but with regard to domestic investing, "all we got is all we got."... I'm expanding my int'l stuff, but will not put a penny into anything from China. Taiwan is different.
  • rforno
    Crash said:

    @sma3 That's where I'm at: China is uninvestable due to their political and military and cyber shenanigans. Never thought the U.S.A. would fall so far, to become a country led by stooges, but with regard to domestic investing, "all we got is all we got."... I'm expanding my int'l stuff, but will not put a penny into anything from China. Taiwan is different.

    @Crash that's been my philosophy since the GFC. That said, I'm actually eyeballing a China ETF b/c I think if the US continues to screw around, China may well become a beneficiary of our self-inflicted chaos as the world seeks more 'reliable' trading partners ... shenanigans and cooked books and all notwithstanding. But I still don't trust the PRC farther than I could throw it, so if I took a position it'd be on a very tight leash.
  • CrashCrash
    Understood. Ya re: USA, this is what happens when gummint holds to zero ethical principles.
  • rforno
    Crash said:

    Understood. Ya re: USA, this is what happens when gummint holds to zero ethical principles.

    "That's called freedom ... er, free-dumb!" [accordion hands]
  • DrVenture
    rforno said:



    @Crash that's been my philosophy since the GFC. That said, I'm actually eyeballing a China ETF b/c I think if the US continues to screw around, China may well become a beneficiary of our self-inflicted chaos as the world seeks more 'reliable' trading partners ... shenanigans and cooked books and all notwithstanding. But I still don't trust the PRC farther than I could throw it, so if I took a position it'd be on a very tight leash.

    I also think that this is a strong possibility.

Sign In or Register to comment.