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
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.
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.