China and the USA, Donald Trump and Xi Jinping have openly stated that they have already spoken by phone and that relations between the two are at a very good level, however, the data shows that the two most important "players" and competitors today are already at war.
The way in which the sweeping acceptance by users of an artificial intelligence application was received, but especially the terror that it immediately brought with very significant economic consequences to American markets, cannot be hidden behind good intentions alone, regardless of whether these are expressed by the two most powerful Presidents on the planet.
The little blue whale (Deepseek) brought disproportionately large losses to the US markets, but also to some of the most important US companies with a valuation that exceeds 10 times the US GDP (NVDIA's valuation is 3 billion at 29 trillion US GDP for 2024). The losses especially on the Nasdaq, the pre-eminent index for investors in the technology sector, but also the approximately 13% of the losses of the US flagship of microchips are not simple records...
The US president said yesterday that the sudden rise of DeepSeek “should serve as a wake-up call” for American technology companies. He explained that while he still expects American companies to dominate the field of artificial intelligence, one cannot help but recognize the challenge posed by the low-cost AI assistant, which took the top spot in the Apple App Store over the weekend. “The release of DeepSeek AI by a Chinese company should serve as a wake-up call for our industries to focus completely on the competition,” Trump said during his tour of Florida.
China is obviously trying to make its mark and put its own terms on the table of discussions and negotiations with the US and Beijing has no intention of leaving the American side to "lay it out" on its own, despite the favorable change in the Oval Office for itself. Beijing is once again trying to open a dialogue in which everything will be discussed and not just what the US considers issues, and if it is to achieve this change it has absolutely no problem using "weapons" (for some, even without quotation marks).
China, despite the constantly positive growth rates of its economy (the largest consistently in the world), lags behind the US in many important indicators. What Beijing wants to be understood, however, is that the distance has decreased and that the "dragon" is no longer in the mood for Washington's "hawks" to treat it on the terms of past decades. It is a given that the Chinese way of dealing with the West does not involve weapons and battlefields. It is also clear that the invasion of ally Russia in Ukraine in 2022 also put China, for which Europe is by far the top market and the largest investment destination, in an extremely difficult position.
China is fighting the US in the shadows, and in fact with the same means that the US is attempting to "relaunch" the "made in USA" brand in the Trump era. The technology for which, within a few hours, the 47th US President presented investments of 500 billion dollars is today in the hands of the entire planet with only a fraction of this specific investment (a little more than 59 million dollars, the creators of Deepseek say it has cost them) and China will certainly use this not in the distant future but in the immediate future. Through the Chinese message, the markets in the US reacted not only numbly and fearfully, and this will bring significant pressure from investors and political actors in order for American artificial intelligence to produce results much faster and at much lower costs.
At the same time, Beijing has left its mark not only on the new President but also on the 46th Joe Biden. Biden and his government have openly raised the issue of valuable land and exports to China. The fact that Beijing, through a start-up company, has managed without these elements to give everyone a product for which American competitors demand the delivery of new generations of microchips that will increase the processing power of their systems shows only one thing: that this particular policy has failed.
It is still unknown how Trump will choose to respond to the Chinese moves, but it should be taken for granted that the only one, besides Xi, who has been smiling broadly since yesterday is Elon Musk. Musk, who participated in the founding of Open AI and openly spoke of an investment without money, putting Trump in a difficult position, can openly talk about the "malfeasance" of Chinese technology when he refers to one of the few projects (Chat GPT) in which he failed...
Source: protothema.gr
