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Alibaba, junk site Temu and various Chinese fast fashion sites like Temu showed that China could eat Amazon’s lunch and that of our retail sector.
TikTok showed that China could build a social media app that could beat America’s dominant monopolies.
Now, AI stocks are rattled by China’s DeepSeek AI.
But there’s a major asterisk underneath “China could:”. China is not just doing this independently. Big Tech’s dirty secret, which shot into the spotlight during the brief battle over H-1B visas for foreign workers, is that it may be CalTech programmers in hoodies out front, but much of the grunt work is outsourced to India and China.
And whatever Chinese workers come into contact with goes right back to the motherland, whether that’s in the form of active spying or simply those same workers going back to China to build their own companies.
AI is simply the latest example of China using H-1B and other cheap workers to harvest America’s economic gains by stealing the technology, development, and achievements at the source.
America’s tech industry will never be competitive with China as long as it outsources its development to China.
China can boast of developing competitive products, platforms and technologies because we do most of the work and then it seizes the gains and figures out a better and cheaper way to implement them.
This is what China has always done.
We need more than tariffs or a ban on Chinese ownership, we need to reckon with the fact that we’re economically coupled to talented thieves and investors putting money into companies that rely on Chinese labor are just buying a house with no windows or doors in a high-crime neighborhood.
Labor from Communist Chinese will ultimately produce Chinese technology, not American technology.
Everything in a communist or fascist slave pen is smoke and mirrors and that’s why the CCP will not invade Taiwan. The Chinese military we are still told is as supremely strong and deadly as we were told Russia’s military was before the Ukraine war.
How has the ridiculous hyperbole worked out for Russia or North Korea for that matter?
Yes, who trains China’s military? It trains itself and it has no experience or ability to do it right.
Excellent analysis.
Thank you, Daniel, for exposing the dirty underbelly of AI when so many powerful people are its loudest cheerleaders . I try not to be a total Luddite about technology, but I came to the Internet late in life and it seems to me that the words Artificial and Intelligence do not even belong in the same sentence ! Pres Trump strongly promotes a wonderful Common Sense agenda, but gets all starry-eyed over the prospect of a huge AI site in Nevada, i. e. the Silicone Valley of AI development, because as a business man he sees thousands of JOBS and Multi Billions of dollars in Investment….. by Elon Musk and Saudi Arabia. Aren’t Elon Musk and his own Mother both a little bit too involved with China and the CCP ? Don’t China and the CCP OWN 51 % of ALL foreign companies located on their soil, plus whatever Intellectual Property they can steal??? Frankly, if the geniuses of AI are able to program Robots to multiply and destroy mankind it seems only sensible to ask the time-honored question, “What could go wrong ?”.
For the answer, I refer to good old Murphy’s Law; “Whatever can go wrong will go wrong and at the worst possible time”. AI is Kryptonite and humans are fallible, ’nuff said.
excellent analysis.
And many key technologies are developed by Americans:
But the Americans who develop the key technologies are often not compensated.
And they are often not the ones allowing their technology to be stolen by China.
Probably cannot go further down this rabbit hole.