NVDA is a monster company right now. 8% of the S&P 500. This would be huge for NVDA and China.
China does the whole "Where do you see yourself in 5 years?" thing on an official level. This is a legacy policy tool from the Soviet Union. Primarily drafting what's known as " Five-Year Plans". Around Trump's first term they pivoted towards high tech. Since they own the banks, they interfere in the "free market", heavily subsidizing and directing resources to sectors deemed important. Essentially giving people jobs, striving for industrial self-sufficiency and what's interesting, capturing market share. This interference in the free market has led to oversupply and bad debt, which leads to deflationary pressure from price wars. Despite their best efforts and massive investment, Chinese are still lagging in the cutting-edge. They've also made directives, like "AI‑Plus Action" to integrate AI, as an example, into industry and civic life. This is true central planning.
The west and America capitalize on this "unique" approach of China by selectively framing the above in different ways to stoke fear and outrage:
- China is trying to be a superpower; Why? Do they want to destroy America?
- They interfere in their domestic free market. They're hurting American companies.
- Chinese are flooding the market with their crap.
- China is going to collapse because they build too much stuff.
The reality of the situation is that the Chinese model is just common sense, but it comes with its own pitfalls. The fact that the Chinese are interfering in the free market, is both very beneficial and problematic at the same time. A difficult balancing act.
The Chinese or the CCP are serious people. This is what guys like NVDA Jensen understand. When we look at countries like Russia or some other scapegoat country, they're essentially following the Jew model of development in addition to being locked out of American "free trade". They let the free market decide everything. Most of Russian innovation pretty much stays in the lab. The government makes no effort to capitalize on it. In addition, Russia is filled with morons and crooks, who can't even run the free market economy properly without sabotaging it.
In China's case it's the opposite. They create jobs, create innovation and they try to capture real market share, so that their companies are profitable. Eventually the Chinese are going to become an equal peer, these export controls are just going to give Chinese companies a bigger share of the domestic pie.
Despite what guys like Negra claim, all American policy makers understand this reality, watch it closely and are obviously raising alarms. To be fair, Chinese propaganda is real, but Chinese propaganda is meant to accelerate their ascent to superpower status through reputation building, obfuscation of their "weaknesses" is a secondary characteristic.
When we see people reject this, saying "I'll never like the Chinese", to be fair they're actually responding to direct stimulus. That stimulus is the very real Chinese progress.