Almost from the start of this blog what seems eons ago I pointed out that sending manufacturing to China in the name of consumer affordability and corporate profitability was a serious strategic mistake. Events have proven me right. Just look at what is happening in the auto industry in the US and Europe.
What industry is next? Semiconductors and AI. Reuters just reported that China is rapidly achieving its own AI chip technology, almost a decade ahead of projections. Given the current drunken craze in this sector, the news ring a bell of sobriety. China is determined not to be left behind in anything, let alone AI.
Can the West compete? Yes, of course. But not in a face-to face bruising battle. The results of the Trump tariff war prove it - China used its muscle and won, no way to hide it.
So, play smart. Give up the consumer spending model and focus on quality, not quantity.
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