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Hua Bin
DeepSeek, a Chinese AI startup, has sent a shockwave through the US tech industry and Wall Street in the last week.
Its LLM R1, trained in 2 months for under $6 million, has outperformed the latest offerings from OpenAI, Meta, Google and Microsoft, who have spent tens of billions and years on their models.
The DeepSeek AI app has topped download charts in the US and China, replacing ChatGPT as the No. 1 AI productivity tool.
Due to its breakthrough technology that shows powerful AI can be developed with very limited investment in computing, DeepSeek’s emergency has sent Nvidia stock reeling, losing as much as 17% on Monday and wiping out $600 billion in market cap.
Interestingly, as we speak, barely a few days after the shockwave on Wall Street, DeepSeek is experiencing a massive denial of service (DoS) attacks from the US on its servers, affecting new registrations.
The US government, including the US Navy, has banned the use of DeepSeek for its personnel. And the congress is already discussing ways to slow down and disrupt DeepSeek.
This episode is eerily reminiscent of the Huawei ban, the TikTok ban, the chip ban, and the EV tariffs. The US regime has fully adopted the Tanya Harding school of how to win by breaking the leg of her competitor. Ask Nancy Kerrigan about it.
As thoughtful people put all these panic-ridden actions in context, the most obvious conclusion emerges – the US regime is not acting from any position of strength. It is behaving like a chicken little who cannot compete, win honestly, and is running scared.
The list of anti-China activities out of successive US regimes is long and varied –
– Trump started to impose 60% tariff on Chinese imports since 2017, a policy the Biden regime continued.
– The Biden regime imposed 100% tax on Chinese EVs, which have not yet even entered the US market. But the competitiveness of Chinese EVs is enough to get Biden to enact pre-emptive tariffs.
– Biden regime imposed dozens of export controls on China, often using coercion against its own “allies” to follow suit such as Holland’s ASML and South Korea’s Hynix and Samsung.
– Biden regime put thousands of Chinese companies on the US entity list with all sorts of made-up justifications in hope of disrupting these companies’ operations.
– Trump is again making noises to impose 100% tariffs on Chinese imports. He is going further to threaten invading Panama and Greenland to contain China.
– The FBI launched the infamous China Initiative to prosecute Chinese scientists working in the US, yielding zero prosecutable case after ruining the lives of numerous scholars and scientists.
McCarthyism is alive and well in the “land of the free”. J Edgar Hoover, the cross dresser, would be proud of the viciousness of the criminal organization he founded.
– The US regime has also harassed the hundreds of thousands Chinese students in the US, who are contributing $150 billion a year to the US economy. It is attempting to prevent Chinese students from studying in advanced technical fields. Anyone studying the defunct neoliberal economics or neoconservative politics and faux democracy is welcome.
– The congress passed a $1.6 billion smear fund in a so-called “anti-CCP propaganda” campaign. The best to counter other’s so-called propaganda is of course to launch a bigger one of your own.
– Every political appointee, as well as elected official, must espouse a fervent anti-China rhetoric in confirmation hearings, TV interviews, and corporate media op-eds. If you are not a China hawk, you have no place in the US power elite.
– Every Pentagon official and military industrial complex funded “think tanker” is expected to sound tough about the coming China US war. They come up frightening concepts like “unmanned Hellscape” strategy in the Taiwan Strait, seemingly unaware China is years ago in drone tech and production.
– The US has tried to mobilize its vassals from Japan, South Korea, the Philippines, Australia, and India into anti-China military alliances. It has formed fearsome-sounding acronyms like AUKUS and QUAD, which are looked upon in awe only by itself.
The “most powerful country in the history of the world” (as self-claimed by multiple US regimes) seems unconfident to take on China on its own.
On the other hand, China is playing its own game. There is no political figure or “expert” jumping up and down on national or local TV to shout against the US. There is little attention paid to the theatrics in Washington and its client states.
China is focused on overcoming the difficulties posed by the aggressive US actions, reducing dependencies, and developing its indigenous capabilities.
– China has diversified its trades. Trading with emerging markets now account for more than 50% of China’s total trade. Trade with the US is less than 3% of its GDP as of 2024.
– Huawei has revived its mobile business and dethroned Apple to return to market leadership in China. Its leadership is more entrenched in the core telecom technology area. It is more vertically integrated with its own chip design and manufacturing supply chain.
Huawei has expanded its product offerings to include mobile operating systems (Harmony OS NEXT), electric vehicles, streaming services, and autonomous driving.
– In AI, Chinese companies are making rapid progress. In addition to DeepSeek, ByteDance, Baidu, Alibaba, 01.ai have all developed sophisticated LLM models.
– China leads in industrial AI applications from robotics, drones to autonomous driving. Companies such as Unitree, DJI, BYD, Xiaomi are integrating AI technologies into multiple areas of practical applications beyond generative AI.
China is also translating its industrial, technological and economic power into military power.
It has recently launched the world’s first 6th generation fighter prototypes (not one but two at the same time), the world’s first drone-carrier, the first hypersonic stealth unmanned airplanes for strike and reconnaissance, the first stealth unmanned warship, and the most powerful long-range air defence systems.
It is progressing rapidly in directed energy weapons, military 5G, atomic timing, and space warfare systems.
All these military technological breakthroughs were unveiled in the last 3 months.
While the US politicians and military figures seem to conflate theatrics with reality, China is quietly amassing the capability to overwhelm its opponent in raw military might, industrial might and economic might.
As we watch with amusement the clownish performance of the US elite, the stinking odor of fear reeks so much you can smell it from across the Pacific.
[…]
Via https://huabinoliver.substack.com/p/the-us-is-reeking-the-smell-of-fear
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