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There’s a domestic AI price war in China, plus pricing in mainland China benefits from lower cost structures and very substantial government support e.g., local compute power vouchers and subsidies designed to make AI infrastructure cheaper for domestic businesses and widespread adoption. https://www.notebookcheck.net/China-expands-AI-subsidies-wit...

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All of this is true and credit assignment is hard, but the brutal competition between Chinese firms, especially in manufacturing, differentiates them from and advances them over economies in the west. It makes investment hard as profits are competed away, which is blasphemy in Thiel's worldview, but is excellent for consumers both local and global.

Yes and: Good for the nations underwriting all that domestic competition. Playbook followed by Japan, South Korea, etc, and most recently China.

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